China trade surplus with US widens to record $34.1B
https://www.apnews.com/962a3f480f59463e88ebb9f057e37157
BEIJING (AP) — China’s trade surplus with the United States widened to a record $34.1 billion in September as exports to the American market rose by 13 percent over a year earlier despite a worsening tariff war.
Exports to the United States rose to $46.7 billion, down from August’s 13.4 percent growth, customs data showed Friday. Imports of American goods increased 9 percent to $12.6 billion, down from 11.1 percent.
Chinese exports to the United States have at least temporarily defied forecasts they would weaken after being hit by punitive tariffs of up to 25 percent in a fight over American complaints about Beijing’s technology policy.
“Exports continued to defy U.S. tariffs last month but imports struggled in the face of cooling domestic demand,” said Julian Evans-Pritchard of Capital Economics in a report. “We expect both to soften in the coming quarters.”
September marked the second straight record Chinese monthly trade surplus with the United States after August’s $31 billion.
Export numbers have been buoyed by producers rushing to fill orders before American tariffs rose, but they also benefit from “robust U.S. demand” and a weaker Chinese currency, which makes their goods cheaper abroad, said Louis Kuijs of Oxford Economics in a report.
The yuan has lost nearly 10 percent of its value against the U.S. dollar this year. That prompted suggestions Beijing might weaken the exchange rate to help exporters, but that might hurt China’s economy by encouraging an outflow of capital. The central bank has tightened controls on currency trading to head off further declines.
China’s overall export growth accelerated, temporarily defying forecasts of a slowdown as the global economy and consumer demand cool.