Chinese economy hits turbulence as trade war takes its toll

Industrial output growth falls to a 10-year low while government makes infrastructure push

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China is encouraging more spending on transport infrastructure as economic growth slows. © Reuters

ISSAKU HARADA, Nikkei staff writer

BEIJING --- The trade dispute with the U.S. is casting a shadow over the Chinese economy, according to a slew of figures released Friday, even as Beijing pushes infrastructure investment by debt-ridden localities.

Industrial production increased just 5% in May, down 0.4 percentage point from April and the slowest growth since January and February of 2009. Power generation, an indicator of the industrial sector's momentum, rose a mere 0.2%.

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