April 23, 2021

Trade between China and the United States falls in the middle of a tariff war | Economy

Trade between China and the United States falls in the middle of a tariff war | Economy

The taking and daca tariff between China and the United States already ballasts the trade between both countries. During the month of January, the exchange of goods between Beijing and Washington fell by 10.1% compared to the same month of the previous year, according to data published Thursday by Chinese customs. The collapse contrasts with what, according to official figures, was a surprisingly good month for China in this area during which the country saw its foreign trade grow significantly with the rest of the main blocks of the planet.

In January, China registered an increase in its foreign trade of 8.7% year-on-year (exports grew by 13.9% and imports by 2.9%), data that They contrast with the bad results at the end of the year. The percentages may be distorted by the effect of the Lunar New Year, which changes each year of date. In 2019, for example, the festivity began on February 4 – about ten days before 2018 -, so the companies increased their activity to a greater extent during January to advance the orders of the following month, when the country is paralyzed by the vacations. Here lies, according to analysts, the reason for this steep growth.

But the data show a trend that has been observed for a few months now: the tariffs imposed between China and the United States that came into force last summer, affecting products whose value amounts to billions of euros, are undermining the exchanges of the two largest economies in the world. While trade between both countries decreased in January by 10.1%, China's with the European Union grew by 17.6%, with Japan by 6.5% and with the Association of Southeast Asian Nations (ASEAN) by 7%. , 8%.

The January data also show a huge imbalance in the exchange of goods between China and the United States. Last month sales of Chinese products in that country increased by 1.9%, although purchases of US goods by the Asian giant sank 38.6%. As a result, the Chinese trade surplus against the United States so reviled by Donald Trump grew more than 30% compared to January 2018, although it was reduced by around 10% when compared with the one recorded last December.

The first data of the powerful Chinese foreign sector this year are known at the same time that delegations from China and the United States meet in Beijing to try to forge the peace of their arduous trade conflict. Chinese Vice Premier Liu He on Thursday began a high-level dialogue with US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer after several previous meetings between the work teams.

Both teams negotiate before the threat that if there is no agreement before March 1, the US administration will increase the tariffs applied to Chinese products valued at 200,000 million from 10% to 25% of dollars. Both countries had three months of truce after the meeting of their leaders in the framework of the G20 in Argentina at the beginning of December. Donald Trump, however, has been open this week to postpone the end of the truce if the talks are on track and a short-term pact is possible.

The negotiators have advanced in a pact in the trade dispute after meeting last month in Washington and all this week in Beijing. China has promised to buy more American products -Particularly soy, a product that was one of the most affected by the Beijing blockade- and both sides seem to have approached positions in formulas that allow reducing the bulky US trade deficit. HoweverThere has been progress in the most delicate and structural matters as the forced transfer of technology (although Beijing prepares a bill that prohibits them), access to the Chinese market or state subsidies.


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