China's Rare Earth Exports Decline, Imports Falling Worse Since 2016

China's rare earth exports fell 16 percent in May from the previous month as trade war with the United States intensified, reports Reuters quoting a report released Monday by the General Administration. customs of the Asian giant.

According to statistics, the Asian giant exported 3,640 tons of rare earth in May, against 4,329 tons in April. In addition, shipments abroad in the first five months of 2019 decreased by 7.2% compared to the same period last year.

Beijing is the world's largest producer of these materials, and supply cuts in Washington could cripple the US technology sector, as 80 percent of its imports depend on China. Against this scenario, the US would badyze the possibility of buying raw material from African countries.

These inputs are used in the manufacture of many products, from electric motors to petroleum refining. They are even considered indispensable in defense because they are used in laser systems, weapons and radar.

However, total exports unexpectedly increased by more than 1%, in contrast to imports, which declined by 8.5%, the largest decrease since July 2016. Some badysts suspect Chinese exporters of rushing to the US -United. . to avoid the new rates announced by Donald Trump.

"We expect export growth to remain positive in June, likely due to a continued load of exports to the United States." Economists at the Nomura Financial Services Group said in a note addressed to their customers after that in the third quarter a drop in numbers was expected when the threatened tariffs came into force.

According to experts interviewed by the news agency, the damage caused by the trade war as well as the weakening of global demand will make 2019 the worst year for trade since the crisis of the year. in 10 years.

RT.