Published 18:27 IST, October 14th 2019
China and US further witness a deterioration in trade relations
China's trade with the United States of America again witnessed a steep decline in the midst of a trade war between both the powerhouses in the year 2019
Reportedly, China's trade with the United States of America again witnessed a steep decline in the midst of a trade war between both countries. Commodities being exported to the US, China's biggest foreign market, fell a staggering 17.8% to $36.5 billion as compared to a previous 16% decline.
A two-way trade war
Imports of American goods saw a 20.6% decline from last year to a total of $10.6 billion, a slight improvement as compared to the 22% decline that was witnessed a few months back.
American president, Donald Trump, agreed to stop a planned tariff hike on Chinese imports. In return, he said Beijing agreed to purchase up to $50 billion of American farm-based commodities. In addition to this, the Trump-led administration stated that there were no agreements on issues related to China's trade surplus.
Tariffs hikes on billions of dollars on both the country's goods have caused a problem for producers and farmers and caused a disturbance in supply chains around the world. Uncertain situations have provoked a few organizations to delay in investing their money, adding to the pressure on growth being witnessed on a global scale.
China's worldwide exports fell 1.4% from a year earlier to $218.1 billion. Imports declines 5.8% to $178.5 billion. The decline added pressure on Chinese President Xi Jinping's administration to support cooling monetary development and avert job losses. Chinese growth tumbled to its lowest level in at least 26 years in the quarter that ended in the month of June 2019, slowing down to 6.2% in the previous year.
Hope for a mutual solution
In addition to this, Trump and Xi Jinping are expected to meet in a meeting that is supposed to take place in Chile in the month of November with the expectations of witnessing a breakthrough in the tariff war.
Dialogues deteriorated over Beijing's request that taxes administered by Trump must be lifted once both the countries come to a mutual decision. Trump and Xi recently agreed to continue their talks on the pressing matter but they still have not reached any decision that would benefit both the countries.
(With inputs from agencies)
Updated 19:59 IST, October 14th 2019