Chinese trade numbers took a disturbing turn, as imports decreased by 8.4 percent during the first two months of the year.
This decrease, which precedes the complete impact of the newly imposed President Trump tax on Chinese imports, and the expectations of the lower economists about a modest rise. Although exports grew by 2.3 percent, as they decreased from 10.7 percent in December, they are still less than 5 percent expectations.
Analysts cite the volatility of factors. Foreign goods' storage may slow down amid concerns about the customs tariff, but periodic weaknesses and dull consumer spending, and played a role, according to economic consultations. The Chinese trade surplus amounted to $ 170.5 billion in January and February, or about 20 billion dollars, which many expected.
Beijing creates the January and February data together to soften the distortions caused by the new lunar year. However, the US -related sales increased by only 2.3 percent on an annual basis, compared to 4.9 percent in December, while exports to the European Union slowed to 0.6 percent of 3 percent. Technical goods, such as semiconductor chips and data processors, have published growth, but categories facing consumers such as clothes and furniture have suffered from a noticeable fall.
President Trump's tariff for Chinese goods-which was presented in mid-February and early March-poses a new risk of China's growth model. Trade tensions come at a time when Beijing revealed an economic support package in its annual “two” meetings, reaffirmed the 5 % growth goal for 2025 and raised the budget deficit to 4 percent of GDP.
Kelvin Lam warns of the macroeconomic economy that exports, a major pillar of economic expansion in China, “may face severe challenges this year” if the conflict escalates with Washington. Lynn Song, chief of Chinese economist in Eng, says the real impact of definitions will appear “gradually in the coming months”, unless the United States and China were able to reach another agreement or insurance.
At the present time, it seems that Beijing policymakers have been identified on enhancing growth through stimulation, but with no sign of relieving their position, the coming months may reveal the elasticity of the export engine in China really.