Trump Warns China Nuclear Tech Exports Will Shrink

  • Trump Warns China Nuclear Tech Exports Will Shrink

Trump Warns China Nuclear Tech Exports Will Shrink

Trump imposed tariffs on almost $200-billion of Chinese imports last month and then threatened more levies if China retaliated.

China's export jump for the month suggests exporters were shipping goods early to beat the latest tariffs, said ANZ's China economist Betty Wang, citing the bounce in electrical machinery exports, much of which faced the looming duties.

September marked the second straight record Chinese monthly trade surplus with the United States after August's $31 billion.

"Exports continued to defy US tariffs last month but imports struggled in the face of cooling domestic demand", said Julian Evans-Pritchard of Capital Economics in a report.

"With global growth likely to cool further in the coming quarters and USA tariffs set to become more punishing, the recent resilience of exports is unlikely to be sustained".

The U.S. has already begun a rhetorical offense against China, with Vice President Mike Pence accusing the state of expanding global control via "debt diplomacy" and meddling in U.S. domestic affairs after the spying controversy came to light, for which a Chinese national was charged on October 11.

China's export data has been surprisingly resilient to tariffs, possibly as companies ramped up shipments before stiffer USA duties go into effect, but factory surveys have shown export orders have been shrinking for several months.

"If that's the case then I think further downside risk can be expected in the fourth quarter", Wang said. The two countries expect bilateral trade to hit $100 billion this year and plan to steadily boost it to $200 billion by 2024.

"They lived too well for too long", Trump said of the Chinese during his Fox News interview. Analysts had expected imports to rise 15.0 percent, compared with August's 19.9 percent.

China's trade surplus with the United States was $225.79 billion from January-September.

Growth in overall imports for September instead showed a moderate slowdown, in line with signs the broad cooling in domestic demand.

Exports to the United States rose to $46.7 billion, down from August's 13.4 percent growth, customs data showed Friday.

The Chinese trade surplus with Europe was $12.7 billion.

To shore up growth, Beijing has pledged to increase export tax rebates from November 1 for the second time this year and promised to cut corporate burden on a larger scale to help struggling Chinese firms. The Journal reported the Trump administration in recent days told Beijing it will go ahead with the meeting, which China has been hoping could help ease the escalating trade tensions. It also slashed China's growth forecast for next year to 6.2 percent from 6.4 percent.