China’s sur­plus with the US hits new record in Novem­ber

The Borneo Post (Sabah) - - WORLD -

BEI­JING: China’s trade sur­plus with the United States bal­looned to a record US$35.6 bil­lion in Novem­ber, of­fi­cial data showed yes­ter­day, as ex­ports across the Pa­cific re­mained strong de­spite a raft of US tar­iffs while im­ports shrank.

Re­la­tions be­tween the world’s top two economies con­tinue to be tense de­spite a trade war truce struck be­tween US Pres­i­dent Don­ald Trump and his coun­ter­part Pres­i­dent Xi Jin­ping.

Trump and fig­ures in his ad­min­is­tra­tion have said China would im­me­di­ately start buy­ing US goods in bulk, but Bei­jing has re­frained from con­firm­ing those claims. The in­creas­ingly lop­sided trade be­tween the two na­tions threat­ens to fur­ther de­rail prospects for a trade deal dur­ing a 90-day ne­go­ti­a­tion pe­riod.

The bal­loon­ing trade deficit with China is a par­tic­u­larly sore point for Trump, who cam­paigned on turn­ing around the sit­u­a­tion.

China’s ex­ports to the US rose 9.8 per cent for Novem­ber on-year, while im­ports for the month fell 25 per cent on-year, the data from China’s cus­toms ad­min­is­tra­tion showed.

China’s over­all trade – what it buys and sells with all coun­tries, in­clud­ing the US – logged a US$44.7 bil­lion sur­plus in Novem­ber, up from US$35 bil­lion the pre­vi­ous month, the data showed.

Amer­i­can farm­ers have been hit par­tic­u­larly hard by the trade ten­sions. Trump tweeted this week that China would be­gin buy­ing prod­ucts from US farm­ers “im­me­di­ately”.

Usu­ally Chi­nese buy­ers have snapped up Amer­i­can soy­beans in the fi­nal months of the year as the har­vest hits the mar­ket and beans from com­peti­tor Brazil dry up.

But this year, Chi­nese buy­ers have passed on US soy­beans which face a 25 per cent bor­der tax upon im­port, part of the $50 bil­lion in US goods Bei­jing hit with higher du­ties this sum­mer in re­tal­i­a­tion for US tar­iffs.

China’s soy­bean im­ports fell 38 per cent on-year, to 5.4 mil­lion tonnes for the month, the data showed.

The trade sur­plus with the US ex­panded to $293.5 bil­lion for Jan­uary-Novem­ber, up from $251.3 bil­lion dur­ing the same pe­riod last year.

But growth of ex­ports and im­ports slowed from Oc­to­ber, with ex­ports ris­ing 5.4 per cent for Novem­ber on-year, short of the 9.4 per cent fore­cast by Bloomberg News, and im­ports ris­ing 3.0 per cent on-year, also be­low the fore­cast.

The sag­ging ex­port and im­port growth is an­other bad sign for China’s econ­omy, which grew at its slow­est pace for nine years in the third quar­ter, ex­pand­ing 6.5 per cent on-year for Ju­lySeptem­ber.

While ex­ports to the US have held up so far this au­tumn, the row has sapped con­fi­dence.

The Shang­hai com­pos­ite stock in­dex has fallen by about onequar­ter from its Jan­uary high, while the yuan has slipped about nine per cent against the dol­lar. — AFP

A cargo ship is seen at a port in Qing­dao in China’s eastern Shan­dong prov­ince. — AFP photo

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.