China's trade with the United States shrinks

Cheryl Sanders
September 11, 2019

" According to Sunday's (September 8th) China customs data, Chinese export to the U.S. fell by 16 per cent on a year-on-year basis, squeezing sharply from a 6.5 per cent fall in July, while United States imports were shrunk by 22.4 per cent last month". Imports dropped 5.6% on-year in August, slightly less than an expected 6.0% fall and unchanged from July's 5.6% decline.

White House economic adviser Larry Kudlow said on Friday the United States wants "near-term" results from U.S.

Beijing slapped 25% tariffs on a list of US products including soybeans in July a year ago, in a response to similar measures by Washington, effectively curbing shipments of the oilseed from the United States, China's second largest supplier before the trade war. Imports from the U.S. slumped 22.4 percent. United States and Chinese negotiators are preparing for talks in October.

Chinese demand, however, has been dampened by a year-old outbreak of deadly African swine fever in the world's top pig producer.

That led Washington to dub Beijing "a currency manipulator".

That's despite analyst expectations that a falling yuan would offset some cost pressure and looming tariffs may have prompted some Chinese exporters to bring forward or "front-load" US-bound shipments into August, a trend seen earlier in the trade dispute.

China's trade surplus with the United States stood at US$26.95 billion last month, narrowing from July's US$27.97 billion.

China said Thursday that new talks with the USA would be held in Washington in early October. The year-on-year data were released as a long-running trade spat between the two world powers showed no sign of ending, despite face-to-face negotiations in Shanghai in July.

The governments agreed to meet again in September but that was postponed to October.

China and the US will hold face-to-face trade negotiations in Washington in the coming weeks, after a rapid deterioration in relations last month left global investors reeling amid increasing evidence the conflict is harming both nations. That would extend penalties to nearly everything the United States buys from China.

The General Administration of Customs said that in the eighth month of 2019, China's foreign trade stood at 2.72 trillion yuan ($381.92 billion), reports Efe news. "Add in the inevitable fall-off when USA shipments finally catch up with 15% and 30% tariffs, and it's an ugly picture". Some have been hit with increases a few times, while about $50 billion of USA goods is unaffected, possibly to avoid disrupting Chinese industries.

Beijing responded by imposing duties of 10 percent and 5 percent on a range of American imports.

Some analysts suggest Beijing is holding out in hopes Trump will feel pressure to make a more favorable deal as his campaign for the 2020 presidential election picks up.

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