China trade surplus with USA hits historic high & timing couldn’t be worse

China trade surplus with USA hits historic high & timing couldn’t be worse

Wang said he had been under the impression that four rounds of high level talks in recent months between China and the United States had averted the trade war.

China's trade surplus widened sharply amid escalating trade tensions with the US, which is preparing to impose fresh tariffs on a further $200 billion in Chinese goods.

This prompted Beijing to accuse Washington of launching the "largest trade war" in economic history, while immediately matching the U.S. tariffs dollar for dollar.

The figures come after the two sides exchanged tit for tat tariffs on billions of dollars worth of goods and Donald Trump threatened to up the ante with measures on a colossal $200 billion of Chinese imports.

As the world's largest exporter, China has threatened retaliatory action against the tariffs and pledged that it would lodge a complaint with the World Trade Organization.

Growth in imports for June showed a moderate slowdown from May, official data showed on Friday.

The dispute has jolted global financial markets, raising worries a full-scale trade war could derail the world economy. So far China has responded in kind, adding tariffs to $34bn of goods from the U.S. and threatening "firm and forceful measures" to match the threat of tariffs on $200bn worth of USA exports.

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China's June exports rose 11.3 percent from a year earlier, beating forecasts for a 10 percent increase according to the latest Reuters poll of 39 analysts, and down from a 12.6 percent gain in May.

In the first half of the year, Chinese exports to the USA increased 13.6 percent as compared to the same period in 2017, while imports from the US only rose 11.8 percent.

Total trade between the world's top two economies rose 13.1 per cent for the first half of the year, official data showed Friday, despite the brewing tensions.

However, a lower yuan would make it more expensive for China to import U.S. goods.

China's Commerce Ministry said that Beijing had no choice but to fight back after the United States "launched the largest trade war in economic history", accusing Washington of violating the rules of the World Trade Organization (WTO).

But in a statement from its commerce ministry, China blamed those problems on the United States, saying the imbalance was "overestimated" and caused by America's own "domestic structural problems".

Imports grew 14.1 percent in June, customs said, missing analysts' forecast of a 20.8 percent growth, and compared with a 26 percent rise in May.

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