China’s exports fell last month in lead up to next month’s trade talks
China’s exports fell 1% on-year last month amid the bruising trade war with the US that is disrupting markets in the world’s top two economies. The drop comes after a surprise 3.3% rebound in July despite the year-long battle with the US and weakening global demand.
But economists cited by Bloomberg had forecast a 2.2% rise ahead of the release of yesterday’s figures by the customs administration.
China’s trade surplus also dropped sharply in August to US$34.83 billion, from $44.58 billion the previous month, while imports continued a four-month decline at 5.6% on-year, matching the July figure.
Washington imposed new tariffs on September 1 as it stepped up its high-pressure campaign to coerce Beijing into a new trade deal. The additional levies come on top of the 25% tariffs on $250 billion in imports already in place.
China announced last week that new talks with the US would be held in Washington in early October.
In a sign of continued pressure on the Chinese economy, Beijing’s central bank announced on Friday it would cut deposit reserve requirements for banks. The measure would allow an estimated $126 billion in additional loans to businesses facing an economic slowdown.
China’s GDP growth was 6.2% on-year in the second quarter, the lowest rate in nearly three decades, although many western economies would have been delighted to even be in positive territory in the current circumstances.
SOURCE: AFP
