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BEIJING (Reuters) – China's trade surplus with the United States is accelerating broadly, with the result that it is likely to inflame a bitter trade dispute with Washington.
The data came after the US President Donald Trump raised the stakes in its trade with China on Tuesday, saying it would slap 10 percent tariffs on an extra $ 200 billion worth of Chinese imports, including many consumer items.
China's trade surplus with the United States, which is at the center of the tariff tussle, widened to a record high of $ 28.97 billion, up from $ 24.58 billion in May, according to Reuters calculations based on official data going back to 2008
Trump has asked for a cut in the United States, and the latest result has been inflicted on trade-offs. Washington has warned it may impose $ 500 billion worth of Chinese goods – nearly the total amount of U.S. imports from China last year.
The dispute over global financial markets, raising worries to a full-scale trade could derail the world economy. Chinese stocks fell into the market and the currency, but there have been signs in its currency.
China's June exports rose 11.3 percent from a year earlier, beating forecasts for a 10 percent increase over the latest Reuters poll of 39 analysts, and down from a 12.6 percent gain in May.
"Looking ahead, growing growth in the future," Julian Evans-Pritchard, Senior China Economist at Capital Economics in Singapore wrote in a note, noted a weaker yuan should help offset some of the decline.
EXPORT RISKS
After a strong start to the year, the growth of China's exports was moderated recently, and is expected to face the pressure of the initial round of U.S. tariffs. Both official and private business surveys reported softer export orders last month as the trade row deepens.
China Huang Songping told a news conference, though he said Beijing was able to handle challenges.
Analysts expect growth in the second half of the year, putting more strain on the economy.
Investors fear a prolonged trade battle with the United States could harm business confidence and investment, global disrupting supply chains and harming growth in China and the rest of the world.
China's trade ministry confirmed last month that Chinese exporters have been front-loading shipments to the U.S. to get ahead of expected tariffs – a situation that could exacerbate any slowdown in shipments toward the year-end.
Imports grew 14.1 percent in June, said customs, missing analysts' forecast of a 20.8 percent growth, and compared with a 26 percent rise in May.
The trade ministry also said this week that it will be used as a source of funds for imports of U.S. to help ease the impact of U.S. trade actions on Chinese companies and their employees.
The promotion of soybean, soymeal, vehicles, aquatic products from other markets.
In a sign Beijing was seeking alternative supplies of the commodities as it hit U.S. imports with extra tariffs, China had dropped import tariffs.
TRADE SURPLUS EXPANDS
China's exports to the United States rose 13.6 percent in the first half of 2018 from a year earlier, while its imports from the U.S. rose 11.8 percent in the same period.
Separate data shows Chinese shipments to U.S. ports are more likely to be expected than they are in the future.
For January-June China's trade surplus with the United States rose to $ 133.76 billion, compared with about $ 117.51 billion in the same period last year.
China's trade surplus of $ 41.61 billion for the month, compared with forecasts for a $ 27.61 billion surplus in June and a surplus of $ 24.92 billion in May. The surplus was China's highest since December.
Reporting by Yawen Chen and Elias Glenn; additional reporting by Lusha Zhang; Editing by Shri Navaratnam
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