China’s exports fall ahead of crucial trade talks
China’s exports fell more than expected in April while imports rose, official data showed Wednesday ahead of high-stakes talks aimed at resolving a trade war with the United States.
The world’s two leading economies face a possible make-or-break moment when top negotiators meet in Washington this week following months of fraught talks.
US President Donald Trump has upped the ante with plans to more than double tariffs on $200 billion in Chinese goods on Friday, the last day of a two-day visit by President Xi Jinping’s point man Vice Premier Liu He.
The trade war has battered shipments between the economic giants.
In April China’s exports across the Pacific fell 13.2 percent from a year earlier, while imports from the US fell 25.7 percent, according to the data from China’s customs administration.
The politically sensitive trade surplus with the US remained large, widening to $21 billion last month from $20.5 billion in March. Last year it hit a record $323.3 billion.
Global markets have taken a beating this week as investors grow increasingly concerned that the China-US trade deal, which last week appeared all but ready to sign, could fall through.
US negotiators accused Beijing of reneging on commitments made during months of talks focusing on clamping down on theft of US technology and reducing China’s massive subsidies.
“If Trump’s threat becomes reality, it will be a game changer for the global economy,” said Steve Cochrane, chief APAC economist at Moody’s Analytics, adding the worst-case scenario would result in a US recession and a rapid reduction of growth in China.
Comments