Mexican Media Brands
China’s Export Volume Shrinks
China says its export volume fell 1% in August, led by a 16% drop in shipments to the U.S.
#economics
Share
China says its export volume fell 1% in August, led by a 16% drop in shipments to the U.S.
China’s export volumes to Europe, South Korea and southeast Asia also declined last month, according to the government’s customs agency. Economists had expected that China’s exports would grow more than 2%.
China’s import volume dropped 6% last month, leaving the company with a global trade surplus of $34.8 billion, including a $27 billion with the U.S.
Analysts say China’s export volume appears likely to decline further through the end of 2019 as the U.S. applies more tariffs on the country’s goods in October and December. Some analysts don’t expects the two countries to end their trade war until late 2020 at the earliest.
China’s shrinking export volume comes even as the nation’s currency weakened last month to more than 7 yuan per U.S. dollar, its lowest in more than 11 years. A weaker currency, which makes Chinese goods cheaper in foreign markets, bolsters exports. But analysts say China also is feeling the effect of a general cooling across the global economy.
RELATED CONTENT
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.