Worries remain as Chinese economy escapes a recession

CHINA today avoided slumping into a virus-induced recession, but there were mounting fears over the long-term health of the world’s second largest economy.

The Asian nation posted a 3.2% rise in second-quarter GDP, bouncing back from a record 6.8% slump in the first quarter.

However, analysts are fretting that state intervention is masking the true picture and US-China trade tensions and a build up of bad debt in the aftermath of the 2008 financial crisis could cause problems. State-owned company investment rose 2.1%, but spending by private companies fell by 7.3%.