July is the month in which exporters enjoyed a truce in the escalation of trade war
Good news for China’s foreign trade which reached excellent results in July. In particular, according to analyst data, exports are up 3.3% and imports down 5.6%.
Exports, which fell by 1.3% in June, beat Bloomberg’s median forecast, which suggested a 1.0% drop. However, what makes the data interesting is that the month of July is the second month when Chinese exports to the United States have faced a 25% higher rate.
After President Xi Jinping and Donald Trump agreed to a break in the new tariffs (during the Osaka G20 summit at the end of June), the month of July, given in hand, was the only month in which exporters they enjoyed a relative respite in the escalation of the commercial war.
Imports, meanwhile, fell by 5.6% in July, according to data published by the general administration of customs in China. This was above Bloomberg data, which was expected to drop by 9%.
The situation sees the United States and China entrenched in their positions
Looking at the data, we will see how China’s total trade surplus was $ 45.06 billion in July, down from $ 50.98 billion in June. The Bloomberg poll had forecast a balance of $ 42.65 billion.
In recent weeks the trade war has intensified, threatening to turn into a full-blown currency war. The situation, in fact, sees the United States and China entrenched in their positions, which could be a prelude to a bitter and sustained clash.
Last week, for example, Trump announced an additional 10% rate on Chinese assets of $ 300 billion as of September 1, but this has not yet been confirmed by the Office of the US commercial representative, the Washington commercial authority.
Last month, exports from China to the United States fell by 6.5%
The trade war – which began in earnest in July 2018 – was consumed in exchanges between the two largest economies in the world. Last month, exports from China to the United States fell by 6.5%, while imports decreased by 19.1%.
Good news for the White House is that China’s trade surplus with the United States was $ 29.98 billion last month, down 0.4% from the previous year and a fall of 6.5. % in June. The US trade deficit with China has long been an important topic at Trump.
The overall increase in exports is in contrast with a series of data that predicted a crisis. In the June purchasing managers index, the indicator was 46.9 in July, up slightly compared to 46.3 in June, but below the 50.0 mark which indicates positivity.
The Chinese economy grew by 6.2% in the second quarter of the year
The crisis of imports in China is persistent and indicates continuous delays in consumption and production. Retail sales, however, remained surprisingly robust, growing by 9.8% in June, largely due to the Chinese government’s efforts to stimulate the economy to increase spending.
Overall, the image remains bleak. The Chinese economy grew by 6.2% in the second quarter of the year, the weakest rate since modern records began in March 1992, with analysts expecting a worse advance for a nation that faces strong contrary winds on several fronts.
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