Record trade surplus for China
$34.1B over U.S. despite tariff war
BEIJING — China’s trade surplus with the United States widened to a record $34.1 billion in September as exports to the American market rose by 13 percent over a year earlier despite a worsening tariff war.
Exports to the United States rose to $46.7 billion, down from August’s 13.4 percent growth, customs data showed yesterday. Imports of American goods increased 9 percent to $12.6 billion, down from 11.1 percent.
Chinese exports to the United States have at least temporarily defied forecasts they would weaken after being hit by punitive tariffs of up to 25 percent in a fight over American complaints about Beijing’s technology policy.
“Exports continued to defy U.S. tariffs last month but imports struggled in the face of cooling domestic demand,” said Julian Evans-Pritchard of Capital Economics in a report. “We expect both to soften in the coming quarters.”
September marked the second straight record Chinese monthly trade surplus with the United States after August’s $31 billion.
Export numbers have been buoyed by producers rushing to fill orders before American tariffs rose, but they also benefit from “robust U.S. demand” and a weaker Chinese currency, which makes their goods cheaper abroad, said Louis Kuijs of Oxford Economics in a report.
The yuan has lost nearly 10 percent of its value against the U.S. dollar this year. That prompted suggestions Beijing might weaken the exchange rate to help exporters, but that might hurt China’s economy by encouraging an outflow of capital. The central bank has tightened controls on currency trading to head off further declines.
China’s overall export growth accelerated, temporarily defying forecasts of a slowdown as the global economy and consumer demand cool.
Exports rose 14.5 percent over a year earlier to $226.7 billion, up from August’s 12.2 percent growth. Imports grew 14.3 percent to $195 billion, down from the previous month’s 20.9 percent rate.
Exports to the 28-nation European Union, China’s biggest trading partner, rose 11.6 percent to $37.4 billion. The Chinese trade surplus with Europe was $12.7 billion.
Chinese leaders have rejected pressure to scale back plans for state-led development of global champions in robotics and other technologies.
Washington, Europe and other trading partners complain those violate Beijing’s freetrade commitments and U.S. officials worry they might erode American industrial leadership.