A Bang in US-China trade wars!
US
trade deficit with China reaches new record high!
According
to the CER, China’s trade data for August dealt a potential blow to
negotiations between Beijing and Washington to avoid a trade war, as the United
States’ monthly bilateral trade deficit reached the highest level on record. Data
from China’s General Administration of Customs released Saturday showed that
$31 billion more goods and services flowed from China to the US last month than
in the opposite direction.
The
gap widened from the $28 billion surplus posted in July.
Exports
to the US were up 13.2% year-on-year, compared to 11.2% year-on-year in July.
China’s imports from the US, meanwhile, grew only 2.3% y/y, down from 11.1% in
July. Despite the increase in its bilateral surplus with the US, China’s
overall trade surplus shrank in August, with total imports up 20% y/y.
Analysts
have pointed to a sliding Yuan, front-loading from suppliers ahead of further
tariffs and a lack of alternative suppliers for the US as potential reasons for
August’s figures.
“In
our view, China’s trade growth is likely to hold up in general this year,”
wrote Serena Zhou, an analyst at Mizuho Securities. “Apart from the help from
some possible front-loaded shipments, we believe the negative impact would only
become more visible after the new tariffs become effective later this year.”
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