China's economy grew at 6.2 per cent year on year in the second quarter, its slowest pace since the early 1990s, as a trade war with the US hit investor sentiment.

The statistics bureau’s release of data on Monday was in line with expectations and slower than the 6.4 per cent reported in the first quarter and the 6.6 per cent for full-year 2018. The softening comes against the  backdrop of difficult relations with the US, which soured in May but improved a month later after a meeting between the two countries' presidents. 

Beijing has set a target of doubling the size of its economy by 2020 compared with 2010. With fears growing that the trade war will dent China’s formidable export industry, Beijing has maintained a loose monetary policy and introduced industrial policies meant to stimulate investment.