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.
--- 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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