uploads///container ship _

China’s Trade Surplus Is Now Higher than What We Had under Obama

By

Jan. 14 2019, Updated 3:05 p.m. ET

China

Today, China released its trade data for December. In 2018, China’s exports rose 9.9% year-over-year, while imports rose 15.8%. China’s 2018 exports growth was the highest since 2011. However, as imports growth outpaced exports growth, China’s trade surplus narrowed to $351.76 billion, the lowest since 2013. China’s trade surplus with the United States rose to $323.32 billion in 2018, which is the highest since 2006, according to Reuters.

Article continues below advertisement

Trade surplus

To be sure, China’s massive trade surplus has been concerning several of its trading partners including the United States. President Trump has taken a tough stance on China’s trade surplus with the United States and the country’s restrictive trade policies. The two sides are currently expected to arrive at a trade deal before the 90-day truce expires. Despite opposition from companies like Amazon (AMZN), Google (GOOG), and Walmart (WMT), Trump went ahead with tariffs on $250 billion worth of goods from China.

Structural change 

To be sure, China’s massive trade surplus with the United States is only part of the problem between the two countries. President Trump is seeking a structural change in China’s policies including on intellectual property rights, forced technology transfers, and industrial subsidies.

Meanwhile, the Chinese economy has been showing signs of moderation. Earlier this month, Apple (AAPL), which was Berkshire Hathaway’s (BRK-B) largest holding at the end of the third quarter, lowered its revenue guidance, citing a slowdown in China. Last year, China’s car sales also fell for the first time in more than two decades.

In this series, we’ll see what China’s December trade data implies for the metal and mining sector. Let’s begin by looking at China’s overall trade data in the next article.

Advertisement

More From Market Realist

  • Man going into a tax preparation office
    Consumer
    Should I File a Tax Extension Before the Tax Deadline?
  • Thai Airways plane
    Consumer
    Thai Airways (TAWNF) Is Risky, Best to Avoid the Penny Stock
  • A "now hiring" sign outside a Popeyes restaurant, one sign that employers are having trouble finding employees willing to work for current wages.
    Consumer
    Why Employers Are Struggling To Fill Jobs Despite High Unemployment
  • Beyond Meat patties in a grocery cart
    Consumer
    Buying the Dip on Beyond Meat (BYND) Stock Is a Risky Move
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.