China's July exports rise more than expected despite USA tariffs

Muriel Colon
August 8, 2018

China's headline numbers are the first readings of the overall trade picture for the world's second-largest economy since United States duties on $34 billion of Chinese imports came into effect on July 6.

The Trump administration has accused China of unfair trade practices, and President Donald Trump has long vowed to bring down the United States' trade deficit in goods with Beijing.

Trump has threatened to levy a 25% tariff on an additional $200 billion worth of Chinese imports to the U.S. - a move that would blow open the disagreement between the countries. For instance, the major complaint is about the theft of USA intellectual property by Chinese firms.

The two sides have shown no signs of letting up, with the US earlier Wednesday saying it will begin collecting 25 percent tariffs on another $16 billion in Chinese goods on August 23, and Chinese media resorting to personal attacks against Trump earlier in the week.

China, on the other hand, argues that the tariffs violate World Trade Organization rules and only harm both countries.

Due to the rising trade tension between China and the United States, the trading arm of Chinese state oil major Sinopec is said to have suspended imports of crude oil from the United States.

The US will begin imposing 25% duties on an additional $16 billion in Chinese imports in two weeks, escalating a trade war between the world's two biggest economies.

Economists warn that a prolonged trade war between China and the U.S. could end up increasing prices for American consumers and hurting United States businesses.


A US-China trade war will reduce global output by 0.7% by 2020, with China's economy taking a 1.3% hit and US GDP dropping 1%, Oxford Economics said in a research note on Tuesday, before the new list was released. There is a mandatory 60-day comment period for industries to ask for exemptions from the tariffs. However, analysts still expect a less favorable trade balance for China in coming months given it's early days in the tariff brawl.

May 19: After a meeting, the two countriesannounce the outline of a trade dealto avoid the tariffs. The move appears to wreck the nascent trade deal.

Negotiations broke off after the Trump administration imposed the tariffs on $34 billion in Chinese imports, a move the Chinese said would void any promises they'd made in negotiations.

July 6:The first tranche oftariffs on $34 billion worth of Chinese goodstakes effect; China responds in kind.

Washington imposed 25% duties on $34bn (£26.3bn) of Chinese goods on 6 July in response to those complaints.

The trade representative said the tariffs were a response to an investigation, released this year, which found China's policies on technology transfer, intellectual property and innovation were unreasonable and discriminatory, and placed an unfair burden U.S. commerce.

Farmers and U.S. industries have been caught in the crossfire, and the Trump administration announced $12 billion in aid to help farmers hurt by duties on crops such as soybeans.

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