China’s Exports, Imports Grow, as Does Trade Surplus With US

China’s Exports, Imports Grow, as Does Trade Surplus With US

China’s Exports, Imports Grow, as Does Trade Surplus With US

Washington and Beijing have raised tariffs on billions of dollars of each other's goods in a fight over American complaints about Chinese technology policy. Imports grew 14.3 percent, down from 20.9 percent.

On Wall Street, the Dow Jones Industrial Average jumped 305 points, or 1.2 per cent, in late-morning trading, and the Nasdaq composite surged 138 points, or 1.9 per cent.

China's exports to the United States rose to $46.7 billion while imports slumped to $12.6 billion.

Notably, the September surplus with the United States was bigger than China's overall trade surplus of $31.69 billion for the month.

Overall, China's global exports rose 14.5 percent over a year earlier, up from August's 12.2 percent growth.

While the data showed China's trade remained strong for the month, analysts forecast the trade war will begin to hurt in the coming months.

The increase, the result of both increasing exports from China to the US - up 14.5 percent from the same month a year ago - and a decline in the goods that China is buying from the U.S.

"It looks like there will be a meeting in Buenos Aires at the G20", Kudlow said in an interview with CNBC.

Analysts say a sharp depreciation of the yuan has also helped China weather the tariffs by making its exports cheaper. The Chinese currency has been falling in value against the dollar in recent months, raising concerns that Beijing is devaluing its currency to make Chinese goods more competitive against USA products.

"With global growth likely to cool further in the coming quarters and United States tariffs set to become more punishing, the recent resilience of exports is unlikely to be sustained", he said. "If China wants the surplus to come down, they have to embark on structural reforms".

They are also promoting settlements in rubles and yuan, bypassing the U.S. dollar and other Western currencies.

Reports that Mnuchin has advised against labeling China a currency manipulator - a status that could trigger penalties - were also seen as easing tensions. The US dollar has strengthened against a range of currencies this year as American interest rates have risen.

China's stock market has plunged this year but the trade war has also started to erode Trump's oft-touted United States stock gains, with the Dow Jones Industrial Average down more than five percent for the week.

The growing trade war prompted the International Monetary Fund on Tuesday to cut its global economic growth forecasts for 2018 and 2019.

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