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Data reveals China's trade surplus with US grew, while global gap shrank
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Data reveals China's trade surplus with US grew, while global gap shrank
Jun 8, 2018 4:42 AM

China's political sensitive trade surplus with the United States widened in May from a year earlier, while its total global surplus shrank as imports accelerated. Imports rose 26 percent from a year ago to $187.9 billion, up from April's 21.5 percent growth, customs data showed Friday.

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Exports rose 12.6 percent to $212.9 billion, little changed from the previous month's 12.9 percent. China's trade gap with the United States widened by 12 percent to $24.6 billion. The country's global surplus narrowed by 39 percent to $24.9 billion.

"With global growth now past its peak, Chinese export growth is trending down," said Julian Evans-Pritchard of Capital Economics in a report. "But progress in U.S.-China trade negotiations raises hopes that a sharp downturn in shipments can be avoided." President Donald Trump has threatened tariff hikes on up to $150 billion of Chinese goods in disputes over Beijing's trade surplus with the United States and technology policy.

Tension eased Thursday when the United States agreed to lift a ban on access to U.S. companies for a Chinese technology company, ZTE Corp. But the two sides still are embroiled in a broader dispute.

Beijing has cut import duties on automobiles and some consumer goods and to ease curbs on foreign ownership in its auto industry. "Even if a trade war is avoided, Chinese trade growth is still likely to edge down over the coming year as the global economy loses momentum," said Evans-Pritchard.

First Published:Jun 8, 2018 1:42 PM IST

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