All looked well as negotiators between China and the U.S. stuck a deal as “phase one” to end the prolonged trade war between the leading economies. Exports to the U.S fell down 23% valued at $35.6 billion as reported by customs data on Sunday. Imports fell too by a value of $11 billion or 2.8% that gave China a surplus of $24.6 billion with the U.S. China increased its exports to countries such as France that helped them offset their losses against the trade losses occurring against the U.S.
China suffered a global export loss of 1.1% from a year earlier that was valued at $221.7 billion even though worldwide demand was seen at a rise. China’s imports increased by 0.3% at $183 billion that put China with a ton of cash at $38.7 billion. President Trump announced “phase one” agreement in October, however, there has been no sign of the deal moving forward ever since. The prolonged dispute has initiated a domino effect in terms of soybean products to medical equipment that further threatens to crunch economic growth.
Year-long reports for China’s exports and imports were found slipping at 0.3% or $2.3 trillion or 4.5% or $1.8 trillion respectively. The trade talks were looking to solidify when the U.S. signed a bill in support of the protestors of Hong-Kong which indirectly seemed like a move to strong-arm China. The move might have backfired as China gave no quarters.
Trump increased tariffs in October however, penalties were imposed on both ends of the stick as billions of dollars of currency stayed frozen and in limbo. Another penalty was imposed by the U.S. that led to the stoppage of goods to the value of $160 billion. Furthermore, the quality of goods also extends to everything that America purchases from China.