While exports of the second-largest economy fell by 1 percent to 214.8 billion U.S. Dollars compared to the previous year, imports declined by 5.6 percent to 179.97 billion dollars, the beijing statistics office announced on sunday. According to the report, the drop in exports to the USA was particularly severe, falling by 16 percent to 37.3 billion dollars.
Both states have imposed heavy penalties on each other. The trade dispute, which has been going on for over a year, was triggered by trump’s annoyance that china exports far more to the u.S. Than the other way around. It calls for the elimination of market barriers, criticizes copyright infringement and forced technology transfer for U.S. Companies operating in china, as well as government subsidies.
Later, the u.S. President also called for structural changes in china and mechanisms to ensure compliance with an agreement. But this is going too far for the leadership in beijing. Trump’s unpredictability also annoys the chinese leadership.
The trade war is slowing economic growth in both countries and also slowing down the global economy. The stock markets are worried. Many analysts warn the conflict could send the U.S. Economy into recession. For the beginning of october, both countries have agreed on new negotiations.