China said on Monday that the total trade surplus last month was $41.65 billion, considerably higher than expected due to the standoff between Beijing and Washington. Economists questioned by Reuters expect a global trade surplus of $20.5 Billion in China.
The largest trade surplus was observed when the country’s dollar-denominated exports surged surprisingly last month, while imports were worse than expected. China’s general customs service said on Monday its exports rose 1.1% in May, while imports fell 8.5% over the same period.
Reuter’s research economists predicted that exports and imports will fall by 3.8% on a yearly basis in May.
China’s total trade surplus in April was $13.8 Billion, well below the forecast of $35 Billion. This is partly due to an unexpected increase in imports of 4% and an unexpected fall in exports of 2.7% in the month.
China’s trade surplus with the United States increased from $21.01 Billion in April to $26.89 Billion in May, according to Chinese customs statistics.
The significant imbalance in trade between the two nations is one of the stated goals of US President Donald Trump, applying high rates to US imports from China. But high-level talks between the United States and China were stalled after the president raised Chinese goods tariffs worth $ 200 billion last month, saying Beijing had broken the deal during the talks.
Trump threatened to raise taxes, a point repeated by US Finance Minister Steven Mnuchin, who told CNBC that the president is happy to raise rates for China if his meeting with Chinese President Xi Jinping is not approved.
Many analysts expect the Chinese trade war to have a greater economic impact on China. Data from the last few months show signs of activity lag. The International Monetary Fund and major banks, such as Morgan Stanley, have recently slashed their growth forecasts for China due to trade problems.
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