According to figures from Chinese customs, the total output last month increased by 4.9% compared to a year ago. That was less than the 6% increase that economists had expected. The Chinese export to the US plummeted by 34.4%, according to calculations from the Bloomberg news agency. That is the biggest decrease since February 2020. That sharp fall compensated for an increase of 11% of exports to other countries.
“The trade war between China and the US led to a considerably lower export to the US, but the damage was compensated by stronger exports to other countries,” said chief economist Zhiwei Zhang of asset manager Pinpoint Asset Management.
After trade consultation last month in Geneva, Switzerland, China and the US decided to significantly reduce their mutual import duties for ninety days, so that there is more time to find a solution for the trade conflict between the two largest economies in the world. The American levies of 145% on most Chinese import goods were then lowered to 30%. The Chinese taxes of 125% on American goods were reduced to 10%. Later today there are new commercial discussions between China and the US in London.