Trump Drawing China’s Blood? Growth In Imports Outpaces Exports As Global Trade Surplus Slumps Over 16 Per Cent

Even as Chinese global trade volume increased, the rate of growth of imports outpaced rate of growth of exports thus cutting into the country’s trade surplus, Deccan Herald has reported.

Global trade surplus for the manufacturing giant fell over 16 per cent to $351.6 billion even as its total trade grew by 12.6 per cent to $4.62 trillion according to the repot. Imports into China grew 15.8 precent while exports lagged with a 9.9 per cent growth.

The fall has been reported amid an ongoing ‘trade war’ between the country and the United States with the two nations having imposed several tariffs on imports from each other. The exact numbers for bilateral trade between the two nations, however, remain under the wraps.

Falling Growth and Demand

Even as Chinese and American officials are engaged in talks for possible resolutions, economic data about the Chinese economy painted a gloomy picture, with the growth rate for 2018 expected to be in the 6.5 per cent region, lower than 2017’s 6.9 per cent and a far cry from the years of double digit growth reported by the country.

Chinese passenger car sales too fell for the first time in over 20 years pointing to eroding consumer confidence due to the trade war and as China tightened car financing options.