Sino-US Trade Tensions May Affect 4th Quarter Values

July’s trade data are the first import and export values recorded following the imposition of US tariffs imposed in the beginning of last month. One of the highlights of July’s trade data is obvious growth in imports pushed up by the substantial needs of the infrastructure sector. As the same time, exports have also grown faster than expected. The elevated trade tension between China and United States is pushing companies to export their goods, however there are not enough orders. So the export data in the third quarter may rise first and then fall for an overall negative effect.


The trade value with the United States may fall in the fourth quarter but some experts believe that then the partnerships with other countries will see faster growth. Some companies are seeking alternative destinations such as emerging markets in European countries.


China’s cooperation with countries involved in the Belt and Road Initiative continues to play an important role in trade accounting for 27 percent of Chinese total trade values for the first seven months in 2018.


Source:Money Talks, ICS