JAKARTA (TheInsiderStories) – Export and import of China worse than expected in September amid the trade dispute with United States (US). Based on the custom office data, the second largest economy still experienced surplus US$2.98 trillion in nine months (9M) and in September $396.5 billion.
Based on the official data, import growth has slowed sharply in the last quarter and now looks very weak compared to the economic growth.
In details, China total export and import during January to September recorded $33.52 trillion. In September only total export import worth of $3.96 trillion.
In terms of export only, the values $2.18 trillion or lowered 0.7 percent compared to last year (YoY). In nine months period $18.25 trillion. While imports $1.78 trillion in september or down dropped 6.2 percent YoY and in 9M worth of $15.27 trillion.
In Renmimbi terms, the exports up 5.2 percent, although imports had to fall 0.1 percent. With these results, during the 9M of 2019, China managed to post a surplus of RMB2.05 trillion.
Behind the rising exports in the January-September period, Chinese exports to the US actually dropped sharply. Noted, Chinese exports to the US decreased 10.3 percent from the same period last year.
China’ trade with US is falling sharply with no sign of progress toward ending a worsening tariff war. Chinese exporters also face pressure from weakening global consumer demand at a time when Beijing is telling them to find other markets to replace its major market.
US and China’ tariff hikes on billions of dollars of each other’ imports have disrupted trade in goods from soybeans to medical equipment and battered traders on both sides. China’ global exports fell 3 percent to $214.8 billion, while imports were up 1.7 percent at $180 billion.
Latest reports said, US and Chinese negotiators has talked last week. Beijing has said Donald Trump’ punitive tariffs must be lifted once an agreement takes effect while Washington says some must stay to ensure Beijing carries out any promises it makes.
In their latest escalation, Washington imposed 15 percent tariffs on $112 billion of Chinese imports and plans to hit another $160 billion on Dec. 15. That would extend penalties to almost everything the United States buys from China. US tariffs of 25 percent imposed previously on $250 billion of Chinese goods are set to rise to 30 percent on Oct. 1.
Beijing responded by imposing duties of 10 percent and 5 percent on a range of American imports. More increases are due on Dec. 15 in line with the US penalties. China has imposed or announced penalties on an estimated $120 billion of US imports.
Some have been hit with increases more than once, while about $50 billion of US goods is unaffected, possibly to avoid disrupting Chinese industries. Beijing also has retaliated by canceling purchases of soybeans, the biggest single US export to China.
The Chinese government has agreed to narrow its trade surplus with the US but is reluctant to give up development strategies it sees as a path to prosperity and global influence.
Beijing is predicted holding out in hopes Trump will feel pressure to make a more favorable deal as his campaign for the 2020 presidential election picks up. Trump has warned that if he is re-elected, China will face a tougher US negotiating stance.
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