The exports of Chinese goods to the United States have gone up this year. China looks to get as many goods as possible off their regions before much steeper tariffs come up in the month of January. A report on Friday said that this growth in exports is because of the concerns amongst the exporters that the tariffs of 10% on $200 billion exported goods to the United States will move up to 25% on 1st January 2019. This apprehension has resulted in exports getting front-loaded. The number of exports saw a growth of 15.6% on a year on year basis, which is up from an original agreement of 11.7% growth. Now, as and when the hike in tariffs kicks in, all these figures are set to get weaker.
The President of The United States, Donald Trump and the President of China, Xi Jinping will meet up during this year’s meet right at the end of November in Argentina. Still, the hopes related to a new trade deal between the countries have died down due to a totally negative rhetoric feeling. This feeling is even after the period of heavily rising demand from the US. Imports coming into China have also gone up as the country boosts up the spending on infrastructure as part of a fiscal stimulus, which is mainly designed to delay the possible economic pain of the US Trade War. The figures for imports managed to grow 21.4% on the back of doubts related to the possibilities of future exports. The currency of China has gone down 10% against the dollar since the month of February, hence helping to boost the competitiveness of exports.
ING is hopeful that the Chinese imports will grow more than the exports in the year 2019 as China brings forth building materials as well as consumables. It is especially due to the tax cuts, which have taken place on the consumables. Though US President, Donald Trump had mentioned earlier that he is even ready to increase the coverage of tariffs to all the Chinese exports to the United States, which managed to top $500 billion in the year 2017.