Trade between the USA and China increases by a fifth despite trump tariffs.

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Chinese exports to the United States last month rose 20.5 percent year-on-year to $44 billion, despite tariffs imposed by the Trump government.

Trade growth in the world’s second largest economy accelerated in September as it recovered from the coronavirus outbreak and as more trading partners reopened their economies.

It was the first major economy to return to pre-virus growth levels in the second quarter of 2020 – after a slump in the first quarter, growth increased by 3.2 percent. Analysts expect the recovery to continue in the third quarter.

Last month, the country’s total exports rose by 9.9 percent year-on-year to USD 239.8 billion, following growth of 9.5 percent the previous month, according to customs data. This was the fourth consecutive monthly increase.

Exporters benefited from record demand for masks and medical supplies and received a boost from the early reopening of the Chinese economy. They also benefited from robust demand for electronic products, although Washington pushed back Beijing’s technological ambitions.

Donald Trump stopped supplying components to companies, including China’s leading technology company Huawei. The technology giant has become a lightning rod for the geopolitical tensions between the US and China.

In May, Washington banned non-American manufacturers, such as Taiwan Semiconductor Manufacturing, the world’s largest manufacturer of contact chips, from building products for Huawei and its chip design arm HiSilicon when using American equipment.

The U.S. president is lobbying his allies to bypass Chinese suppliers in the transition to next-generation telecommunications networks that could affect future exports of technology products.

China’s world trade surplus rose 6.6 percent to $37 billion, but this was a sharp drop from the $58.9 billion gap in August. The data showed that the country’s largest trading partner was ASEAN, which accounted for more than $416 billion in the first 8 months of the year.

Imports rose by 13.2 percent to $202.8 billion, compared to a 2.1 percent drop in August. Imports of American goods increased by 24.5 percent to 13.2 percent during this period.

Demand for imported manufactured goods such as iron ore and copper has increased as automakers return to normal operations. Retail sales remain weak, however, as customers are reluctant to spend.

Due to ongoing trade tensions in the U.S. and the global impact of the coronavirus outbreak, China is trying to reduce its dependence on overseas markets.

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