China's trade surplus with the United States breaks records as tensions rise

China's monthly trade surplus with the United States hit a record high in June and exports to the nation also climbed, highlighting the cause of a growing trade war between the two largest economies in the world.

The United States stood at $ 28.97 billion, the highest level of any month since 1999. Exports climbed to $ 42.62 billion, a peak also, said the United States. Customs Administration Friday

. strong global demand, but rising tensions and trade barriers with the United States weigh on the outlook. China and the United States imposed tariffs of 34% on the imports of the others on July 6th and Beijing promised to fight the customs duties on 200 billion dollars of additional Chinese goods

. Washington could eventually charge more than $ 500 billion worth of Chinese goods, almost the total of US imports from China last year.

The conflict has shaken global financial markets, raising concerns that a large-scale trade war could derail the world. economy. Chinese stocks have fallen into the territory of the bear market and the currency of the yuan has slipped, although there have been signs in recent days that its central bank is moving to slow down the currency's declines.

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The decline of the yuan in June was the worst of all months since 1994, falling more than 3% against the dollar. While this may help exporters in the long run, the fall of the yuan is now a sign of growing concern as the trade war comes at a time when the economy is already slowing. President Xi Jinping may have to choose between relaxing his multi-year campaign to control debt levels, or let growth fall below the target of 6.5%.

"The record bilateral surplus shows exactly that the US economy is robust China is weakening," said Wang Jian, Shanghai-based economist at Shenwan Hongyuan Group Co.'s "Chinese investment is declining because of financial stress, while consumption is not particularly strong. "

in dollars, while imports soared 14.1%, below a forecast of 21.3%, leaving a trade surplus of $ 41.61 billion. The trade surplus with the European Union has reached its highest level since 2011, while the deficit with Japan has declined.

Trade data exceed the second quarter gross domestic product ratio, which should give a more complete picture. the second largest economy in the world did in the first half of this year. "Imports and exports experienced strong growth in the first half, with companies taking orders ahead of the trade war, giving some pretty good trade data since the beginning of the year, but there is still a lot going on. Momentum is difficult to sustain in the future, "said Ding Shuang, chief economist at Greater China & North Asia at Standard Chartered Bank Ltd. in Hong Kong, one of the most accurate forecasters of trade data this month. He said China's domestic demand remains strong despite lower import growth.

Investment, industrial production and growth in retail sales all slowed in May. The credit crunch will also be subtracted from investments in infrastructure and real estate for the rest of the year as local governments reduce their borrowing and real estate developers have less access to parallel financing channels. Last month, industrial production slowed moderately, especially in upstream sectors such as smelting and chemicals, "said Gai Xinzhe, an badyst at the Bank's Institute of International Finance. China in Beijing. This is a "worrying sign" for the second half of this year, with domestic demand already showing signs of slowing in previous months, he said.

Bloomberg