China’s global exports are flourishing a six-month high in September; however, exports to the United States drop 27% in the same month, in comparison to the last year. According to the customs figures released on Monday, China’s global exports stood at 8.3% higher than a year earlier, at $ 328.5 billion, exceeding economic estimates. Imports increased 7.4% last month, better than a 1.3% increase by year in August, though a weaker domestic economy and a real estate sector downturn continue to weigh on demand and consumption.
Notably, China’s exports to the US have dropped for six straight months. In August, they fell by around 33%.
Trade tension with the US intensifies
Trade tensions with the US intensified on Friday as US President Donald Trump intimidated an extra tariff on Chinese goods and export controls on critical software. Emerged after China announced hitting American ships with new port fees in response to the US plan to impose port fees on Chinese vessels docking in the country. Not only this, Beijing extended export Controls on lithium-ion batteries and on Exports of rare earths and related technologies.
China would not back down in face of 100% tariff
On Sunday, Oct 12, China indicated that it would not back down in the face of a 100% tariff threat from the Trump-led administration and appealed to the US to resolve differences via negotiations. US President Donald Trump responded by taking a less confrontational approach without retreating from his demand, whereas his vice president seemed to warn Beijing to response calmly.