China\u2019s Ministry of Commerce plays down impact of Trump tariffs on tradeBeijing says US consumers still prefer Chinese products<\/b>
\nChina\u2019s exports to the United States are still growing thanks to a strong American economy and consumers\u2019 preference for Chinese products, the country\u2019s ministry of commerce said on Monday.
The delivery of previously placed orders and \u201cfront-loading\u201d by Chinese shippers also contributed to a robust performance so far this year, the ministry concluded in a report reviewing and forecasting China\u2019s trade performance.
As such, the impact of the US trade war on China\u2019s trade and broad economy will be \u201climited\u201d with \u201ctotal risks under control\u201d, the ministry concluded in the report.
\u201cThe United States unilaterally provoked economic and trade friction, which not only affects Sino-US trade but has also brought significant uncertainties to the development of global trade and investment,\u201d the ministry said.
China\u2019s exports to the US rose 13.3 per cent in the first 10 months compared with a year earlier while its imports from the US increased by 8.5 per cent in the same period, according to China customs data. In October alone, Chinese exports to the US rose by 13.2 per cent while its imports from the US fell 1.8 per cent, earning Beijing a trade surplus of US$32 billion last month.
According to Beijing\u2019s commerce ministry, strong demand for imported products in the US \u2013 the result of low unemployment, robust growth and good consumer confidence \u2013 is a fundamental factor helping China to sell to the US despite tariffs imposed by US President Donald Trump.
In addition, the industrial chains of China and the US are \u201cclosely integrated\u201d and the two countries\u2019 economic structures are \u201chighly complementary\u201d, the ministry added.
The US imposed 10 per cent tariffs on a total of US$200 billion worth of Chinese products in late September \u2013 a rate set to rise to 25 per cent in January if Beijing does not make concessions.
The measures followed an initial round of tariffs on US$50 billion worth of products.
China has responded in a tit-for-tat manner by imposing tariffs on US imports.
While China\u2019s export data looks solid for now, many economists said the impact of the trade war would start showing up in China\u2019s exports data in the first or second quarter of next year, adding to the woes of an economy that is already growing at its slowest pace in a decade.
China\u2019s trade ministry also said that the country \u201cfaces both severe challenges and presents new development potential\u201d next year and the ministry would work hard to ensure a \u201csteady\u201d trade situation.
Chinese President Xi Jinping is set to meet Trump at the G20 leaders summit in Argentina next month in the hope of easing trade tensions.
Speaking at China\u2019s first imports expo in Shanghai last week, Xi said China would buy more goods and services from abroad, saying the country\u2019s purchases of foreign goods would be worth US$30 trillion over the next 15 years.
Xi also announced the country would buy US$10 trillion worth of foreign services in the same period.
Analysts expect the trade war will see China importing more from other countries as it reduces tariffs.
However, China\u2019s growth is likely to slow further in the coming months as the trade war takes its toll and there are signs that policymakers are increasingly nervous about the outlook.
In response, the government has launched a series of measures to support the economy, including cutting individual taxes, speeding up infrastructure spending and extending additional financing options to help struggling smaller companies.<\/p>\n