A view of Zhangjiakou Port in eastern China’s Jiangsu province on Oct. 21. Photo: cnsphoto
China’s trade growth with the US slowed in October compared to September, Chinese customs data revealed on Sunday, as the phase one trade deal between China and the US moves ahead before the deal closes in January 2022.
Although bilateral trade grew 33.4 percent year-on-year to $66.794 billion from January to October, the growth rate declined, compared with a 35.4 percent growth rate from January to September, according to customs data.
That brought China’s trade surplus with the US to $40.75 billion in October, up from $42 billion recorded in September, according to calculations made by the Global Times.
China’s value of imports from the US was $14 billion in August, rising to $15.4 billion in September, but fell to $13 billion last month.
China’s macro-regulatory policies on the domestic economy and real estate sector resulted in slower investment and consumption growth, leading to a decline in US imports, Tian Yun, former vice director of the Beijing Economic Operation Association, told the Global Times. .
Right now, the global economy is suffering from supply chains — China is short of energy and the US is short of goods, he noted. “Which country could stabilize domestic supply chains and have a large share of the global value chain will perform better in foreign trade.”
Despite October statistics, the phase one trade deal between China and the US is progressing as China ramped up its purchase of US energy products.
Chinese state oil giant Sinopec on Thursday signed a huge deal with US Venture Global LNG to buy 4 million tons of liquefied natural gas (LNG) annually for 20 years, the largest long-term LNG deal ever signed between the two largest in the world. economies.
China’s energy imports grew year on year from January to October, with coal imports growing 1.9 percent and natural gas imports 22.3 percent, customs data shows.
A recent survey by the US-China Business Council found that 64 percent of US congressional districts exported more goods to China in 2020 compared to 2019, with 72 districts increasing their exports by more than $100 million. The rebound was especially sharp in the Midwestern farming communities, oil-exporting regions of Texas and Louisiana, and the semiconductor hub of Oregon.
However, Trump’s tariffs remain a major obstacle to holding back the growth of bilateral trade.
“If tariffs are lowered or eliminated… China is sure to increase imports and exports with the US. The country needs US energy products to get through a cold winter and ease domestic supply bottlenecks,” Tian said. .
Earlier this month, comments from US Treasury Secretary Janet Yellen about the US cutting US tariffs on Chinese goods marked a positive sign in bilateral trade relations, which could be an important step for the two countries to move towards a of their largest and most damaging trade disputes. — rates, analysts said, suggesting practical actions can be taken as soon as possible.