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