China trade surplus with USA hits record high in June

Workers sort dried seafood for export at a factory in Lianyungang in China's eastern Jiangsu province on July 5

Workers sort dried seafood for export at a factory in Lianyungang in China's eastern Jiangsu province on July 5

Beijing announced Friday that China's surplus with the USA hit an all-time high of $28.97 billion (€24.85 billion) in June, with exports reaching a record $42.62 billion in June.

The figures come a week after the trade war between the two began, with the United States imposing tariffs on $34bn of Chinese goods, and China retaliating. Both official and private business surveys reported softer export orders last month as the trade row deepens.

China's total exports rose 11.3% year-on-year in June, beating a Bloomberg News forecast of 9.5%.

"Those talks produced progress, so much so that the USA government said they would put the trade war on hold, but all of a sudden an announcement was made to impose tariffs on imports from China". So far, encouraged by strong job growth and expectations of good quarterly earnings reports, U.S. markets have been strong and the Australian market has reached a 10-year record high.

Exports rose 11.3 per cent over a year earlier to $216.7 billion, down from May's 12.6 per cent growth, customs data showed Friday. China said the two sides were not discussing restarting trade negotiations.

Analysts expect shipments growth to slow in the second half of the year, putting more strain on an economy already feeling the pinch from a multi-year debt battle that has driven up corporate borrowing costs.

"This trade dispute will definitely have an impact on China-US trade and will have a very negative impact on global trade", a Chinese customs administration spokesman said today.

Trump slams Germany over Russian gas pipeline, calling it ‘a frightful mistake’
History has shown that Russian Federation has a penchant for attempting to control Europe by cutting off energy supplies.

But, he said, China has another option - Beijing could reduce the impact of U.S. tariffs on exporters by devaluing the yuan to make its goods cheaper for American consumers.

"There will be challenges facing foreign trade with rising instabilities and uncertainties in the global environment, " said a Chinese customs agency report.

The spiraling battle between Beijing and Washington shows no signs of cooling down.

Imports increased by 14.1%, below the forecast 21.3%. This reduces the domestic pressure on the USA to resolve its trade disputes with China, Canada, Mexico and Europe, which triggered the new tariffs.

For January-June, it rose to $133.76 billion, compared with about $117.51 billion in the same period a year ago. China retaliated with higher duties on a similar amount of American goods.

Trump has railed against China's trade surplus with the USA, which ran at $375 billion in 2017, and has demanded Beijing cut it. Washington has warned it may ultimately impose tariffs on more than $500 billion worth of Chinese goods - roughly the total amount of United States imports from China previous year.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.