CHINA TRADE SURPLUS WITH U.S. WIDENS TO US$22.2B
BEIJING: China’s surplus with the United States widened last month, underlining an imbalance between the economic titans as they struggle to reach an agreement on averting a potentially damaging trade war.
The figures yesterday will likely reinforce Washington’s determination after high-level talks in Beijing last week ended with both sides admitting there were big differences to overcome, with threats of tariffs on billions of dollars of goods casting a shadow.
The record imbalance is at the heart of US President Donald Trump’s anger at what he describes as Beijing’s unfair trade practices that are hurting American firms and destroying jobs.
Customs data showed the surplus grew 4.2 per cent on-year to US$22.2 billion (RM87.7 billion) last month, with exports rising by a tenth and imports up more than 20 per cent.
Compared with March, the surplus was up 43.9 per cent, though analysts say seasonal factors such as Chinese New Year had dampened exports for the month.
Attention now turns to a visit next week by a delegation led by Chinese Vice-Premier Liu He — considered President Xi Jinping’s right-hand man on economic issues — hoping to iron out the differences.
However, there are concerns about the chances of success.
“We don’t expect all core differences in the US-China trade relationship to be resolved,” said Wang Tao, chief China economist in Hong Kong for UBS.
“Lingering trade tension and uncertainty will likely negatively affect China’s export orders and related business investment,” he said.