Commercial dispute: China’s exports to the United States break in August

China’s exports to the USA broke out in August. As the customs administration in Beijing announced, deliveries to the United States decreased by around 33 percent in the year. Against the background of this weakness in the US business, the entire exports of the People’s Republic only increased by 4.4 percent compared to the same month. That was less than expected and the slightest plus for half a year.

There is no end in sight to the end of the trade dispute between the two largest economies. In mid-August, both countries had agreed on an extension of their customs creation for another 90 days. However, high taxes also apply – 30 percent of Chinese imports into the USA and 10 percent on American goods in China.

Commercial dispute dampens foreign demand abroad

It went a little better for China in other regions. In August, exports increased by more than 10 percent in the EU, exports to Germany rose by 7.5 percent. Chinese manufacturers also try to expand their deliveries to Asia, Africa and Latin America in order to cushion the stress from the US tariffs. But it is not easy to find markets that can compensate for the consumer power of the United States.

Despite a difficult and complex foreign economic environment, China’s foreign trade continues to show resistance and develops new dynamics, commented on Lü Daliang, director of the Statistics and Analysis of the Chinese customs authority, the August data.

Brics states want to advise location

Meanwhile, the Brics countries want to come together in a video count on Monday to report on the consequences of US trade policy. According to the Chinese Ministry of Foreign Affairs, state and party leader XI Jinping will also take part in the meeting.

XI accepts an invitation from Brazilian President Luiz Inácio Lula da Silva, who organizes the meeting. The BRICS group includes the large emerging countries of Brazil, Russia, India, China and South Africa.