Thursday, September 20, 2018
News

China's June exports seen solid as trade war with US heats up

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

BEIJING | Wednesday, Jul 11 2018 IST
China's exports growth is expected to have cooled only slightly in June, possibly further boosting a trade surplus with the United States in a test for Beijing as it tries to weather a volley of U.S. tariffs on its goods that many fear could harm its economy.

The Trump administration on Tuesday raised the stakes in its trade dispute with China, saying it would slap 10 percent tariffs on an extra $200 billion worth of Chinese imports, including numerous consumer items.

Washington's latest move came only days after it imposed 25 percent tariffs on $34 billion of Chinese imports, drawing rapid retaliatory duties by Beijing on the same amount of US exports to China.

All the same, given the most recent round of tit-for-tat tariffs went into effect only on Friday, there has been little impact on China's overseas shipments to date.

"All in all, the trade impact of the first round of the tariff should have a very limited impact on China's exports to the US, with the maximum loss of $5 billion," Alicia Garcia Herrero, Chief Economist at Natixis Asia Research, wrote in a recent note.

That view was backed by the Reuters poll of 39 economists, which forecast Chinese exports growth of 10 percent year-on-year in June, cooling slightly from a 12.6 percent rise in May.

China's Ministry of Commerce said last week it would encourage exporters to develop new export markets, and would also use funds collected from tariffs to ease the impact from US trade actions on companies.

Imports growth was also expected to remain solid at 20.8 percent last month, the third straight month of 20-plus percent growth, albeit slowing again from the 26 percent surge in May.

FOCUS ON CHINA'S US TRADE SURPLUSThere is also likely to be considerable focus on the US-China trade balance as US President Donald Trump has railed against China's sizable surplus with the world's no. 1 economy and has demanded Beijing take measures to cut it.

The poll showed China's overall trade surplus likely widened to $27.61 billion in June from $24.92 billion in May. There was no separate forecast on China's trade surplus with the United States which has continued to grow even as its total surplus has narrowed over the last two years.

China ran a $375 billion goods trade surplus with the United States in 2017.

Worryingly, there have been few signs that either Beijing or Washington are prepared to ratchet down the trade frictions.

China said on Wednesday that the latest US actions were "completely unacceptable" and that it would be forced to respond.

While there have been few signs the trade tussle is having a broader impact so far, analysts expect China's export growth to slow in the second half of the year and fear that a prolonged row with the US could put an already slowing economy on the skids.

The commerce ministry confirmed last month that Chinese exporters were front-loading shipments to the US to get ahead of expected tariffs - a situation that could exacerbate any slowdown in shipments towards year-end.

"I think Chinese leaders do think they will obviously be hit significantly by all this damage from a trade war but they think they can probably ride it out economically," said Louis Kuijs, Hong Kong-based Head of Asia Economics at Oxford Economics.

REUTERS SW 1414

-- (Reuters) -- C-1-1-DL0386-1434330.Xml

Loading...
 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
TRENDING TOPICS
 
 
 
CITY NEWS
MORE CITIES
 
MORE ASIA NEWS
Hardik Pandya picks up injury in Asia Cu...
Asia Cup : India beat Pakistan by 8 wick...
Muniz wins World Games gold, Olympic hos...
class='article-header__title-text js-pag...
Pakistan court suspends jail terms of Sh...
Lebanon president: negative rumours abou...
More...
 
INDIA WORLD ASIA
Man who washed feet of Godda MP & drank ...
Mehbooba asks NIA to put facts about it...
Gujarat Assembly hikes MLAs' salaries by...
ED attaches assets worth Rs 37 cr in lan...
Haryana govt transfers 41 HPS officers...
Madhya Pradesh HC orders removal of PM M...
More...    
 
 Top Stories
Shambhulal Regar, who lynched man o... 
India offers NKN programme to Afgha... 
MoU signed for establishing Mahatma... 
Pakistan PM Imran Khan reaches UAE... 
N Korea's denuclearisation to be co... 
High gluten diet in pregnancy incre... 
Korean leaders undertake joint excu... 
Haryana govt transfers 41 HPS offic...