China's US Exports Tumble as Tariffs Bite
October 14 2019 - 8:01AM
Dow Jones News
By WSJ City
China's exports to the US shrank by more than one-fifth last
month, hit by heavier tariffs, underscoring the urgency for Beijing
to resolve trade friction with Washington.
KEY FACTS
--- Chinese shipments to the US slumped nearly 22% in September
from a year earlier.
--- This, along with a slowing global economy, was a major
factor in the 3.2% drop in exports in September.
--- These factors are likely to keep exports subdued in the
coming quarters.
--- Lower exports and sluggish domestic demand contributed to a
fifth straight monthly drop in Chinese imports.
--- China's overall trade surplus widened to $39.65bn in
September, from August's $34.8bn surplus.
Why This Matters
High-level trade talks between China and the US in the past few
days yielded a truce. President Trump said the US would shelve a
planned increase in tariffs in return for China's assurance it
would buy agricultural products from the US worth $40bn to $50bn.
The outcome was seen as something of a win for China.
The thaw in tensions lifted market sentiment but is unlikely to
help with China's trade outlook, said Larry Hu, an economist with
Macquarie Group, pointing to slower global economic growth as the
main culprit in the weakening of China's exports.
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(END) Dow Jones Newswires
October 14, 2019 07:46 ET (11:46 GMT)
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