Published: Fri, July 13, 2018
Business | By Kate Woods

China trade surplus with USA hits record $29bn high

China trade surplus with USA hits record $29bn high

Beijing said China's surplus with the United States hit an all-time high $28.97 billion last month, while exports to the country hit a record $42.62 billion.

Last week, the United States and China introduced tariffs of 25 percent on $34 billion of each other's exports.

Analysts also pointed out that Chinese export growth slowed to 11.3% year on year in June, from 12.2% in May, illustrating that exporters, faced with the threat of further trade barriers, were becoming more circumspect in sending goods overseas.

China's exports to the United States rose 13.6 percent in the first half of 2018 from a year earlier, while its imports from the U.S. rose 11.8 percent in the same period.

Analysts expect to see the impact of the tariffs in July's figures. That leaves about $80 billion for penalty tariffs after Beijing's previous increases either imposed or threatened on a total of $50 billion of USA goods are counted.

More news: Stop zooming in on attractive women

But signs exporters were rushing shipments before tariffs went into effect in the first week of July suggest the spike in the surplus was a one-off, with analysts expecting a less favourable trade balance for China in coming months as duties on exports start to bite.

Earlier on Thursday, President Donald Trump said the United States was in a nasty trade battle with China, but things would ultimately work out. Its trade surplus with the USA over the same period was $133.76bn, up from $117.51bn previous year.

Trump has launched a barrage of "Section 301" trade tariffs, punishing what he says is China's theft of intellectual property and unfair industrial policies.

But in a statement coming from the Chinese Commerce Ministry, The Asian nation said the surplus was overestimated and caused by America's own "domestic structural problems".

Earlier this week Donald Trump proposed a 10% tariff on $200bn of Chinese goods entering the U.S., saying that tariffs already in place on steel and aluminium imports and $34bn of goods had failed to force significant reforms by Beijing.

More news: Black Widow Movie Gets A Director

"Targeting such a large amount of basic consumers will inevitably have an effect on U.S. inflation".

China's surplus with the United States hit a record high last month, data showed today.

After a strong start to the year, growth in China's exports has moderated recently, and is expected to face more pressure from the initial round of US tariffs.

Companies worry the spiralling dispute might dampen global trade and economic growth.

Imports grew 14.1 percent in June, customs said, missing analysts' forecast of a 20.8 percent growth, and compared with a 26 percent rise in May.

More news: Jury orders J&J to pay $4.7 billion in Missouri asbestos cancer case

Like this: