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China’s trade surplus with USA hits record high of US$34 billion

12 October 2018

China's trade surplus with the United States hit a record $34.1 billion last month, according to official figures released in Beijing on Friday, news that is likely to further inflame the trade dispute with the United States.

The September surplus with the USA was larger than China's overall trade surplus for the month.

Relations between the world's two largest economies have soured sharply this year, with US President Donald Trump vowing on Thursday to inflict economic pain on China if it does not blink.

"We expect the dynamic to change once we get a bit deeper into this, but for now China is trying to outrun the next round of tariffs", he said.

Foreign ministry spokesman Lu Kang offered no specifics, but said that "I have also seen the relevant reports". 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.

What started out as a trade war between the U.S. and China is showing alarming signs of escalating into a geopolitical war. "It's had a big impact", Trump said in an interview with Fox & Friends.

The trade war entered a new level in September, with the USA imposing 10 per cent tariffs on US$200 billion worth of goods imported from China, effective as of September 24, which could escalate to 25 per cent in January 2019, while China fought back with tiered tariffs from 5 to 10 per cent on US$60 billion of United States goods.

Trade turnover between Russian Federation and China has been rapidly growing, rising 30 percent to reach $77 billion from January to September, statistics from China's General Administration of Customs show.

President Trump added he could do a lot more if he wanted to, but said he would prefer Beijing come to the negotiating table. That prompted Mr Trump to threaten to extend the tariffs to nearly all China's $500 billion of exports.

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

Trump said the Chinese want to negotiate but he does not believe they are ready and he told them so. But global trade would continue to face challenges as the U.S.

The IMF also lowered estimates for the United States and the global economy as a whole.

China’s trade surplus with USA hits record high of US$34 billion