Last month, the trade surplus of China with the United States of America rose to its highest-ever record, as the tensions rise over the heightening tit-for-tat tariff war between the two of the world’s economic superpowers.
The most recent figures reveal that the trade balance of China with the United States increased to $29 billion (£22 billion) last month, increasing from the $25 billion that was recorded last May.
However, the exports from China into the United States may possibly take a hit now that the tariffs have officially been imposed by the United States on the $34bn worth of Chinese goods in an action that was also reciprocated by Beijing.
The most recent data is new evidence of a developing trade imbalance between the two nations, as exports from China are increasingly outweighing the imports from the United States of America.
Since January, the exports of China to the United States have increased to 13.6 percent, as compared with an increase of 11.8 percent in imports from the United States.
Last month, the commerce ministry of China confirmed that exporters from China were front-loading exports to the United States before the expected tariffs started to be imposed, implying a possible slowdown in shipments towards the end of this year.
The said actions are only likely to rise after the renewed trade threats of US President Donald Trump were released earlier this week, in which the White House disclosed that it would consider another 10 percent tariff on $200 billion worth of imports from China which urged China to pledge that it would “fight back” against the possible new tariffs.
Analysts anticipate seeing the effect of the tariffs in the figures for July.
A China analyst at Nordea Bank in Singapore, Amy Zhuang, stated: “We expect the trade numbers for July to disappoint since that’s when the first round of US tariffs took effect.”
She added: “Still, we do not expect a plunge because those tariffs only targeted $34bn worth of goods which is fairly small compared to China’s total trade.”