China: Trade problems persist - ING

Sandeep Kanihama FXStreet Contributor

Iris Pang, economist at ING, notes that even though the outcome of the sideline meeting between President Trump and President Xi at the G20 meeting was a so-called truce, Chinese exporters continued to export goods earlier than planned to avoid a possible further increase in tariffs.

Key Quotes

“These front running export activities seem to have finally ended as exports fell 1.3% year on year in June after a small increase of 1.1% in May. It seems exporters have run out of goods to export to the US that could circumvent future tariffs. In June, China's exports to the US rose by a meagre 4.3% month on month after a 20% spike in May.”

“Given exporter's pessimistic outlook about future trading activities, imports contracted too - 7.3% YoY in June after falling by 8.5% a month ago - as exporters haven't imported many parts for future production. For 2H19, we believe exports and imports will continue to shrink.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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