China’s sur­plus with the US hits new record

Oman Daily Observer - - INTERNATIONAL -

BEI­JING: China’s trade sur­plus with the United States bal­looned to a record $35.6 bil­lion in Novem­ber, of­fi­cial data showed on Satur­day, 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 last week.

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 in goods 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.

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.

— Reuters

A man works at a cold-rolling mill in Wuhan, China.

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