China's Oil Imports Slump In May As Beijing Slashes Iran Imports
Jun 11 2019
Washington and Beijing resumed their trade battle last month when trade talks in the US ended without a deal and US President Donald Trump raised tariffs on US$200 billion (RM831 billion) in Chinese goods, which Beijing retaliated to with its own tariff hike on billions worth US goods.
Rare earth exports by China, the world's dominant producer, fell 16% in May from a month earlier amid an increased focus on the raw materials due to the Sino-U.S. trade war, although the drop was in line with usual trading.
The trade surplus surged to $41.7 billion in May compared with $13.8 billion the previous month. The figure for April had been $21.01 billion.
A person at USA software giant Microsoft said the company's session with Chinese officials was not a direct warning but it was made clear to the firm that complying with U.S. bans would likely lead to further complications for all sector participants.
In retaliation for recent trade bans on Huawei, China has reportedly called on some of the top tech companies and warned them about what kind of consequences they will face if they "cooperate with the Trump administration's ban".
Beijing responded to Trump's latest tariff hike by increasing levies on $60 billion of United States products on June 1. The deal was finalized when Xi Jinping, Chinese President, started his three-day visit at Russian Federation.
As per Reuters, treasury secretary Steve Mnuchin, a man who can't spell "munchkin", dropped the first leading hints that Huawei was being used as a bargaining chip in the ongoing trade war between the United States and China.
"Soybean imports were lower as the higher tariffs on US shipments continued to weigh".
Others attributed the bounce in May to exports being scheduled so they are shipped ahead of when tariffs kick in, pointing to a likely drop later in the year.
"While exports rose in May, weaker global demand and the escalating trade war suggest that they will start to fall again before long", Marcel Thieliant, senior economist at Capital Economics, said in a note.
"The better-than-expected exports in May, which could have been helped by a depreciation in".
Analysts believe exporters may have speeded up their USA shipments to avoid the tariffs brought in by U.S. authorities in May.
"I think what the president is saying is if we move forward on trade, that perhaps he'll be willing to do certain things on Huawei if he gets comfort from China on that and certain guarantees", he said.