Despite the imposition of tariffs by the US, China’s exports for the month of July unexpectedly surged and the trade surplus figures of the country with that of the US fell just slightly amidst an escalating trade spat between the two largest economies of the world.
The US administration under president Donald Trump slapped another round of tariffs on Chinese goods, as announced on Wednesday, worth $16 billion with 25% tariffs, applicable from August 23. This is the latest move by Trump in his effort to get China to agree to a more favorable trade agreement.
The data released by the Chinese government on Wednesday is the first set of comprehensive data that was issued since the implementation of the US tariffs on Chinese goods worth $34 billion which came into effect from July 6.
However, the July export figures of China marked a 12.2 per cent increase in year-on-year which indicates that there has been very little or no impact of the US tariffs on eth economy and exports of the country. The market and analysts were expecting a growth rate of about 10 per cent.
The figure that has intrigued economists and market smore is the trade surplus of China with the UIS which came down only slightly at $28.09 billion for July compared to a record $28.97 billion a month earlier. This trade surplus that China enjoys with the US is one of the major concerns for the Trump administration and the imposition of tariffs by Trump is aimed at reducing that trade surplus.
And the irritation of the US over the trade surplus of China would get more aggravated because of a sharp fall in the value of the yen in recent months. The US has on earlier occasions criticized China of manipulating its currency to boost its exports which has been termed as a wrong trade policy by Washington.
A more hands-off approach to the yuan is being adopted by China according to economists as the currency noted its worst 4-month fall on record between April and July and has been a cause of relief for Chinese exporters who have been concerned by the trade tensions with the US.
It is likely that its currency would not be used a tool in the trade war by China, said ANZ senior China economist Betty Wang.
“Currency devaluation, which may have helped exports to some extent, has been largely market-driven in our view and is not a preferred policy tool by Chinese policy makers as part of the retaliation measures,” Wang said.
Despite the tariffs, there was also a rise in the trade of China with the US where there was a 11.2 per cent increase in year-on-year exports and 11.1 per cent increase in year-on-year imports.
Bur analysts expect a fall in China’s overall trade surplus with the US in the coming months because the tariff regimen has just begun.
(Source:www.reuters.com)
The US administration under president Donald Trump slapped another round of tariffs on Chinese goods, as announced on Wednesday, worth $16 billion with 25% tariffs, applicable from August 23. This is the latest move by Trump in his effort to get China to agree to a more favorable trade agreement.
The data released by the Chinese government on Wednesday is the first set of comprehensive data that was issued since the implementation of the US tariffs on Chinese goods worth $34 billion which came into effect from July 6.
However, the July export figures of China marked a 12.2 per cent increase in year-on-year which indicates that there has been very little or no impact of the US tariffs on eth economy and exports of the country. The market and analysts were expecting a growth rate of about 10 per cent.
The figure that has intrigued economists and market smore is the trade surplus of China with the UIS which came down only slightly at $28.09 billion for July compared to a record $28.97 billion a month earlier. This trade surplus that China enjoys with the US is one of the major concerns for the Trump administration and the imposition of tariffs by Trump is aimed at reducing that trade surplus.
And the irritation of the US over the trade surplus of China would get more aggravated because of a sharp fall in the value of the yen in recent months. The US has on earlier occasions criticized China of manipulating its currency to boost its exports which has been termed as a wrong trade policy by Washington.
A more hands-off approach to the yuan is being adopted by China according to economists as the currency noted its worst 4-month fall on record between April and July and has been a cause of relief for Chinese exporters who have been concerned by the trade tensions with the US.
It is likely that its currency would not be used a tool in the trade war by China, said ANZ senior China economist Betty Wang.
“Currency devaluation, which may have helped exports to some extent, has been largely market-driven in our view and is not a preferred policy tool by Chinese policy makers as part of the retaliation measures,” Wang said.
Despite the tariffs, there was also a rise in the trade of China with the US where there was a 11.2 per cent increase in year-on-year exports and 11.1 per cent increase in year-on-year imports.
Bur analysts expect a fall in China’s overall trade surplus with the US in the coming months because the tariff regimen has just begun.
(Source:www.reuters.com)
