China's Trade Surplus With the US hits record high

China's Trade Surplus With the US hits record high

The June figures may have received a boost from United States and Chinese traders who rushed to fill orders for soybeans, ball bearings and other goods in both directions before threatened tariff hikes took effect.

The difference between China's exports to the U.S. and its imports from the world's largest economy expanded to a monthly high of $29bn (£22bn), up from $24.6bn in May.

China's total exports rose 11.3% year-on-year in June, beating a Bloomberg News forecast of 9.5%.

Thus far, China has imposed retaliatory tariffs on $34 billion-worth of US imports, targeting politically sensitive goods such as soybeans. So far China has responded in kind, adding tariffs to $34bn of goods from the United States and threatening "firm and forceful measures" to match the threat of tariffs on $200bn worth of USA exports.

This prompted Beijing to accuse Washington of launching the "largest trade war" in economic history, while immediately matching the United States tariffs dollar for dollar.

China's commerce ministry has said the two sides are not discussing restarting trade negotiations, and renewed its pledge to "strike back" against Washington's latest threat to slap $200 billion of Chinese imports with new 10% taxes.

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 United States tariffs.


In yuan terms, China's exports grew 3.1% in June and imports rose 6.0%. Both official and private business surveys reported softer export orders last month.

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.

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.

In a sign Beijing is seeking alternative supplies of the commodities as it hit U.S. imports with extra tariffs, China had dropped import tariffs on a range of animal feed ingredients from several Asian countries.

For January-June China's trade surplus with the United States rose to $133.76 billion, compared with about $117.51 billion in the same period previous year.

Analysts expect to see the impact of the tariffs in July's figures. China is running out of American goods for retaliatory tariffs due to their lopsided trade balance.

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