Posted on 09/08/2019 10:14:43 AM PDT by E. Pluribus Unum
China's exports unexpectedly fell in August as shipments to the US slowed sharply, adding to worries about the effects of the two nations' trade war.
China is expected to announce more support measures soon, to avert the risk of a sharp economic slowdown.
These could include the first cuts in four years to some key lending rates.
August exports from the world's second largest economy fell 1% from a year earlier, the biggest fall since June, when they fell 1.3%,
Analysts had expected to see a rise in exports.
'Sluggish demand' China's August exports to the US fell 16% year-on-year, slowing sharply from a decline of 6.5% in July. Meanwhile, imports from the US slumped 22.4%.
There were escalations in August in the year-long trade row, with Washington announcing 15% tariffs on a wide range of Chinese goods from September.
China hit back with levies of its own, and let its yuan currency fall to offset some of the tariff pressures.
On Friday, China's central bank cut banks' reserve requirements for a seventh time since early 2018 to free up more funds for lending.
Analyst expectations had been that a falling yuan would offset some cost pressures.
China let its currency slide past the key 7-per-dollar level in August for the first time since the global financial crisis.
That led Washington to dub Beijing "a currency manipulator".
"Exports are still weak even in the face of substantial yuan currency depreciation, indicating that sluggish external demand is the most important factor affecting exports this year," said Zhang Yi, economist at Zhong Hai Sheng Rong Capital Management.
(Excerpt) Read more at bbc.com ...
Time for some new analysts.
China's exports unexpectedly fell in August...
It’s going to be fun to see our MSM leap to the defense of poor China against nasty Trump.
It is insane to trade with our enemy communist China.
I can only say .... “Thank God for President Donald Trump!”
Quite buying things based on price alone. Sending USA wealth to China, a communist country and our enemy; how does one rectify it?
Buy USA; give your neighbors a job.
As well as new reporters
us census bureau trade dollars reported
us to china 7.1 B
china to us 41.6 B
7.1 *.24 = 1.7 B lost
41.6 * .16 = 6.6 B lost
Headline should read “ China losses almost 5 billion dollars more than America so far during Trade dispute”. Not to mention the future losses as suppliers relocate.\
Also as a percentage of economy it worse..
contraction of us economy as a percentage = .08 percent
contraction of chinese economy as a percentage = .33 percent or as the headline should read
“ Chinese economy contracting at 4 times the rate of Americas economy due to trade dispute”
But obviously the author became a reporter because they couldn’t do math or basic internet research.
Suppliers will relocate, perhaps to the U.S. I know, wishful thinking, but it would be nice nonetheless. If only we had a business environment in this country that would provide the incentives. Instead, we have the “apologize for capitalism” gang.
PDJT is correct in that we definitely need a better trading relationship if we are to continue doing business with communist China
The ChiComs can devaluate their currency all that they want but there will come a day when we just close the borders to their exports and they will be done.
Even if companies relocate to some other country, it’s a net positive for the US.
Thailand, India, and Vietnam are not building navies seeking to challenge the US in the near future. China is.
Communist China will just increase its exports of Fentanyl and meth through Mexico to make up for the difference
>>It is insane to trade with our enemy communist China.<<
Absolutely agree. We’ve witnessed the greatest transfer of wealth in world history from the American middle class to the communist Chinese.
Our leaders, current and former should be ashamed of themselves for selling out hard working American workers and our national security.
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