There has been a shocking news among the trade war between China and the United States that despite the imposition of tough tariffs in the US, there has been an increase in China's exports. In May, China's exports increased by 1.1 percent, while it was expected to fall, because America is China's largest trading partner. However, during this time the import of China has decreased, indicating domestic demand is declining.
Some experts on the sharp rise in exports say that before the deadline for imposing tariff by the US, many exporters started exporting their goods faster, due to which this growth is showing.
However, according to news agency Reuters, despite China's export growth, this fear can not be ruled out that if the US-China Trade War runs longer then the global economy will go down in recession.
Experts say that given the lack of Chinese imports, it seems that it will have to provide relief packages to support their markets. About 20 percent of China's gross domestic product is exported. China's imports declined by 8.5 percent, which is the biggest drop in the past three years.
US President Trump on May 10 raised tariffs on Chinese goods worth $ 200 billion to 25 percent and warned of imposing tariff on the remaining 300 billion dollars. Responding to this, China also increased tariffs on American goods.
Trump will meet Chinese President Xi Jinping at the G-20 Summit this month, but experts believe that the hope of a compromise between the two countries is going down. The gap between the two countries has increased significantly. China has asked its citizens to be aware of America's visit, so the American MPs have demanded strict visa rules for Chinese students.
US Finance Minister Steven Mnushin said on Saturday that the US is ready to negotiate further with China in the trade dispute, but to the next meeting of the top leaders of the two countries for the possible agreement. Have to wait.
The trade war between China and the US is going on since March last year when the Trump Administration imposed a heavy tariff on steel and aluminum imported from China. In response, China also increased tariff on US imports of billions of dollars.
China actually remained under some pressure because the United States was the second largest trading partner in China after the European Union. In the first four months of this year, China's trade has declined by 20 per cent from the US. During January to April, the trade between the two countries was 1.1 trillion yuan.
