Trump warns he could do ‘a lot more’ on China trade
12 October, 2018, 19:46 | Author: Eric Barnett
The president and Vice President Mike Pence in recent weeks have also accused Beijing of trying to meddle in November's midterm elections to hurt Trump because he is putting pressure on China over trade.
Despite a worsening tariff war, China's trade surplus with the United States has widened to a record $34.1bn in September.
In fact, the September surplus with the USA was larger than China's overall trade surplus of $31.69 billion for the month.
The direct impact and indirect impact of the ongoing trade frictions is "generally controllable", Customs department spokesman Li Kuiwen said Friday.
China's export jump for the month suggests exporters were shipping goods early to beat the latest tariffs, said ANZ's China economist Betty Wang, citing the bounce in electrical machinery exports, much of which faced the looming duties.
A weaker yuan CNY=CFXS, which has depreciated about 6 percent against the dollar this year, may have taken the sting out of the tariffs imposed on $250 billion of exports to the United States.
China's export data has been surprisingly resilient to tariffs, possibly as companies ramped up shipments before stiffer US duties go into effect, but factory surveys have shown export orders have been shrinking for several months.
For January-September, China's trade surplus with the United States was $225.79 billion, compared with about $196.01 billion in the same period previous year. The president claimed he does not believe Beijing are ready to begin discussions in a Fox News interview earlier this week.
The U.S. has already begun a rhetorical offense against China, with Vice President Mike Pence accusing the state of expanding worldwide control via "debt diplomacy" and meddling in U.S. domestic affairs after the spying controversy came to light, for which a Chinese national was charged on October 11.
Trump said Thursday that his tariff strategy was working.
But China has been standing firm, repeatedly saying that the only solution was through negotiation and compromise on both sides.
"Bullying might be effective for small economic entities, but it will not be effective against a big economic power", Yu wrote in a column published Friday in the state-run China Daily.
An imbalance of trade is at the center of an increasing bitter dispute between the world's two biggest economies.
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