China’s January exports rebound

FE Team | Published: February 24, 2019 22:36:15

BEIJING, Feb 24 (AP): China's January exports rebounded from a contraction amid a tariff battle with Washington while Chinese purchases of US goods plunged.
The data were announced after US President Donald Trump said might decide whether he escalates a fight over Beijing's technology ambitions by going ahead with a March 2 tariff hike on $200 billion of imports.
Total exports rose 9.1 per cent from a year earlier to $217.6 billion, an improvement from December's 3.5 per cent decline, customs data showed. Imports declined 1.5 per cent to $178.4 billion.
Exports to the United States sank 2.4 per cent to $36.4 billion, squeezed by Trump's tariff hikes.
Imports of American goods plunged 41.2 per cent to $9.2 billion, reflecting retaliatory Chinese duty increases and orders to importers to find other suppliers.
The talks in Beijing this week may decide whether Trump allows another increase on $200 billion of imports from China to go ahead March 2.
Weakness in global demand for Chinese goods has increased pressure on the ruling Communist Party to make peace with Washington at a time when Beijing is trying to reverse an economic downturn.
The government has warned Chinese exporters the global environment is "complicated and severe."
"The downbeat outlook for global growth means that this year is likely to be challenging for Chinese exporters, even if the ongoing US-China trade negotiations culminate in a deal," said Julian Evans-Pritchard of Capital Economics in a report.
Chinese trade data early in the year are disrupted by the Lunar New Year holiday, which comes at different times in January or February each year. Factories rush to fill orders and then close for up to two weeks.
China's global trade surplus for January was $39.2 billion. The surplus with the United States was $27.3 billion.
Exports to the United States held up through much of 2018 despite Trump's tariff hikes, but fell 3.5 per cent in December as the impact of the increases began to depress demand.