In recent time, China posted trade data that was higher than projected in spite of the accelerating economic pressure from escalated US tariffs. The Asian economic titan stated that in July its U.S. dollar-denominated exports increased by 3.3% from a year earlier while imports declined by 5.6% in the same period. According to customs data, in July, China’s whole trade surplus was $45.06 Billion. While for the same period the trade surplus with the U.S. was $27.97 Billion. From January–July, China’s trade surplus with the U.S. has summed up to $168.5 Billion. Lu Yu—Portfolio Manager from Allianz Global Investors—stated a deteriorated Chinese yuan alongside the U.S. dollar and other currencies has aided Chinese producers to sell their products overseas. That is despite the U.S. slapping 25% levies on $200 Billion of Chinese products in May following trade negotiations stalled.
The devaluing yuan “is supporting the Chinese exporters to export goods not just for the U.S. as it reduces the consequences of the tariff raise, but also helped them to export to other regions,” she said to CNBC. Economists surveyed by Reuters had anticipated Chinese exports in the last month to decline by 2% compared to the last year, and imports to fall by 8.3%. China’s overall trade surplus for July was projected to be $40 Billion, as per to the Reuters poll. In June, exports from China declined by 1.3% yearly while imports plunged by 7.3% for the same period, customs data reported. The trade surplus in June was $50.98 Billion.
Speaking of the Chinese economy, recently, Beijing’s contentious “Made in China 2025” plan is a backbone of Northeastern rust belt’s prospect. Whilst Beijing might be keeping its contentious “Made in China 2025” industrial tactic away from public debate, the state-driven intend to elevate Chinese manufacturing is the bedrock of economic recovery in Liaoning, which is one of the three provinces of Northeastern rust belt. This 4-Year-old plan that focuses to wean China from its dependence on foreign imports and technology, and construct global hi-tech supporters, has become a political hot spot for the ongoing U.S.-China trade war.