Tuesday , September 27 2022

Chinese exports to the United States rose as a higher tariff trend, business news and top stories


BEIJING • Chinese exports to the United States and the rest of the world recorded a sudden leap last month, data showed yesterday, pointing out that companies are dispersing transpacific supplies before they start at higher rates.

Relations between the two leading world economies have rapidly damaged this year, while US President Donald Trump has hit more than half of China's imports and threatened to hit the other half.

The top Chinese officials are currently in Washington, hoping that these talks will allow for a breakthrough in trade later this month, when Mr. Trump meets with Chinese President Xi Jinping at the G20 summit in Argentina.

However, exporters continued to hurry goods across the Pacific last month, while Chinese exports to the United States increased by 13.2 percent compared to the same period last year, according to Chinese customs data.

It seems that "the surprisingly extraordinary effect of exports in October is partly due to the continuous front loading effect and there will probably be no long-term trend," said an economist from China Betti Wang in the ANZ.

The Chinese surplus in trade with the United States fell to $ 31.8 billion ($ 43.6 billion) last month, with a record $ 34.1 billion in September.

October marked the first full month of US tariffs at $ 200 billion in Chinese goods – but the rate rate is charged from 10 percent to 25 percent in January.

Mr Trump has repeatedly praised that the United States can not lose a trade war with China, but Beijing's withdrawal tariffs for US goods are so much more harmful than trade.

Chinese imports from the US fell 1.8 percent last month last year, while its surplus with the United States expanded to $ 258 billion in the first 10 months this year.

The weak yuan, which fell about 9 percent from the US dollar in January, helped to compensate for additional tariffs for Chinese products.

Analysts are not optimistic that the upcoming meeting between the two heads of state will resolve friction.

"We do not expect the Ksi and Trump meeting during the G20 to be positive," said Iris Pang of ING Bank for Bloomberg Nevs.

"We just hope this meeting will not create further damage to the trade relationship."

Chinese total trade – what it buys and sells with all countries, including the United States – has reported a surplus of $ 34 billion for that month.

Exports rose 15.6 percent in October last year, outpacing Bloomberg's 11.7 percent forecast, while imports rose 21.4 percent annually, well above the 14.5 percent forecast.

"While shipments to the United States were well maintained, those in other parts of the world grew even faster," said Louis Kuijs of Okford Economics.

"Global demand can be better than it feels, and the weaker Chinese yuan also helps exporters in the country."

Robust imports showed that the Chinese economy remained stable despite announcing growth in the third quarter of 6.5 percent of gross domestic product – the slowest pace in nine years.

Beijing could withdraw from its campaign to face growing debt, which greatly influenced growth, analysts say.

"Robust imports, especially goods, could be an indication of the return of investment in infrastructure and the stabilization of the real estate market," Wang said.

Despite robust trade data, analysts predict that the US-China conflict will record growth in the coming months.


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