China’s trade surplus is on track to hit a fresh record high this year, increasingly leaving it on a collision course with some of the world’s biggest economies by increasing an imbalance in global commerce that risks provoking President-elect Donald Trump and his much-discussed tariffs, according to a detailed report by Bloomberg.

The difference between Chinese exports and imports will reach $1 trillion<o:p></o:p>

The total difference between Chinese exports and imports is set to reach almost $1 trillion if it continues to widen at the same pace as it has in the year to date, according to Bloomberg calculations. Further, the goods trade surplus soared to $785 billion in the first 10 months, according to data released last week, the highest on record for that period and an increase of almost 16 per cent from 2023, the Bloomberg report explained further.

“With Chinese export prices still falling, export volume growth was enormous,” Brad Setser, a senior fellow at the Council on Foreign Relations, said on X. “The overall story is of an economy that is again growing off exports.”

China has been relying more on exports to compensate for the weakness of domestic demand that Beijing has only recently tried to redress by injecting stimulus into the economy.

The increasingly lopsided picture has generated pushback from a growing number of countries, and the new Trump administration is likely to impose tariffs that would reduce the flow of exports to the US. Countries from South America to Europe have already raised tariff barriers against Chinese goods such as steel and electric vehicles.

Expert views on the possibility of a US-China trade war<o:p></o:p>

Sachchidanand Shukla, Group Chief Economist, Larsen &amp; Toubro, in a recent LinkedIn post, stated that:

“What timing! A ~$1 trn Chinese trade surplus being reported is like poking Trump in the eye as he gets ready to take charge as President again - this headline is sure to draw retaliation sooner than later from him.”

“Importantly, such a huge imbalance in global trade &amp; commerce will also invite global Ire.”

“So folks, fasten your seat belts for the coming trade &amp; currency wars...”

Foreign companies are pulling out money from China<o:p></o:p>

Foreign companies are also pulling money from China, with foreign direct investment liabilities dropping in the first nine months of the year, according to data released on Friday. Should the decline continue for the rest of the year, it would be the first annual net outflow in FDI since at least 1990, when comparable data begins.

The response from Beijing so far has been to promise more support for companies, with the state council announcing Friday it would lift financial support to industries to promote stable foreign trade growth, foster economic development, and stabilize employment.

Chinese companies have been ramping up their export performance over the past few years. By contrast, the slowing economy, increasing electrification and rising replacement of foreign manufactured goods with domestic alternatives are suppressing demand for imports.

The result in October was the third-widest surplus in history that came just below June’s record. The trade surplus calculated in yuan hit 5.2 per cent of nominal gross domestic product in the first nine months of this year, the highest since 2015 and well above the average level for the last decade.

The surplus with the US rose 4.4 per cent so far this year from the same period last year. It increased 9.6 per cent with the European Union and jumped almost 36 per cent with the 10 Southeast Asian nations in ASEAN, the latest data shows, added the Bloomberg report further.

Imbalances are also growing in many other nations. China now exports more goods to almost 170 countries and economies than it buys from them, the most since 2021. A currency war may be brewing as well. India’s central bank has said it’s ready to let the rupee weaken if China lets the yuan drop to counter US tariffs.

A falling yuan would make Chinese exports cheaper and could further widen the surplus with India, which hit $85 billion so far this year, 3 per cent higher than in 2023 and more than double the level five years ago.

Market participants and investors will follow these developments carefully. These developments will help them make better and more informed investment decisions.

<o:p>&nbsp;</o:p>

China’s trade surplus is on track to hit a fresh record high this year, increasingly leaving it on a collision course with some of the world’s biggest economies by increasing an imbalance in global commerce that risks provoking President-elect Donald Trump and his much-discussed tariffs, according to a detailed report by Bloomberg.

China’s trade surplus is on track to hit a fresh record high this year, increasingly leaving it on a collision course with some of the world’s biggest economies by increasing an imbalance in global commerce that risks provoking President-elect Donald Trump and his much-discussed tariffs, according to a detailed report by Bloomberg. The difference between Chinese exports and imports will reach $1 trillion The total difference between Chinese exports and imports is set to reach almost $1 trillion if it continues to widen at the same pace as it has in the year to date, according to Bloomberg calculations. Further, the goods trade surplus soared to $785 billion in the first 10 months, according to data released last week, the highest on record for that period and an increase of almost 16 per cent from 2023, the Bloomberg report explained further. “With Chinese export prices still falling, export volume growth was enormous,” Brad Setser, a senior fellow at the Council on Foreign Relations, said on X. “The overall story is of an economy that is again growing off exports.” China has been relying more on exports to compensate for the weakness of domestic demand that Beijing has only recently tried to redress by injecting stimulus into the economy. The increasingly lopsided picture has generated pushback from a growing number of countries, and the new Trump administration is likely to impose tariffs that would reduce the flow of exports to the US. Countries from South America to Europe have already raised tariff barriers against Chinese goods such as steel and electric vehicles. Expert views on the possibility of a US-China trade war Sachchidanand Shukla, Group Chief Economist, Larsen & Toubro, in a recent LinkedIn post, stated that: “What timing! A ~$1 trn Chinese trade surplus being reported is like poking Trump in the eye as he gets ready to take charge as President again - this headline is sure to draw retaliation sooner than later from him.” “Importantly, such a huge imbalance in global trade & commerce will also invite global Ire.” “So folks, fasten your seat belts for the coming trade & currency wars...” Foreign companies are pulling out money from China Foreign companies are also pulling money from China, with foreign direct investment liabilities dropping in the first nine months of the year, according to data released on Friday. Should the decline continue for the rest of the year, it would be the first annual net outflow in FDI since at least 1990, when comparable data begins. The response from Beijing so far has been to promise more support for companies, with the state council announcing Friday it would lift financial support to industries to promote stable foreign trade growth, foster economic development, and stabilize employment. Chinese companies have been ramping up their export performance over the past few years. By contrast, the slowing economy, increasing electrification and rising replacement of foreign manufactured goods with domestic alternatives are suppressing demand for imports. The result in October was the third-widest surplus in history that came just below June’s record. The trade surplus calculated in yuan hit 5.2 per cent of nominal gross domestic product in the first nine months of this year, the highest since 2015 and well above the average level for the last decade. The surplus with the US rose 4.4 per cent so far this year from the same period last year. It increased 9.6 per cent with the European Union and jumped almost 36 per cent with the 10 Southeast Asian nations in ASEAN, the latest data shows, added the Bloomberg report further. Imbalances are also growing in many other nations. China now exports more goods to almost 170 countries and economies than it buys from them, the most since 2021. A currency war may be brewing as well. India’s central bank has said it’s ready to let the rupee weaken if China lets the yuan drop to counter US tariffs. A falling yuan would make Chinese exports cheaper and could further widen the surplus with India, which hit $85 billion so far this year, 3 per cent higher than in 2023 and more than double the level five years ago. Market participants and investors will follow these developments carefully. These developments will help them make better and more informed investment decisions.

China approaches $1 trillion trade surplus as Donald Trump makes a comeback

China is using telecoms giant Huawei to try to drive a wedge between Britain and the United States, Republican senator Tom Cotton told British lawmakers on Tuesday.

Also read:&nbsp;<a href="https://www.wionews.com/world/us-president-trump-poses-for-cameras-with-bible-in-hand-amid-riots-302684" hreflang="en">US President Trump poses for cameras with bible in hand amid riots</a>

Cotton is one of several members of the U.S. Congress who have sought to put pressure on Britain to reverse its January decision to give China's Huawei a limited role in building Britain's 5G networks.

"It is my hope that the special relationship remains strong although I fear China is attempting to drive a hi-tech wedge between us using Huawei," Cotton told the British parliament's defence committee.

The United States has raised security concerns about Huawei equipment, saying it could be used to steal Western secrets, and has warned that allies that use it in their networks risked being cut off from valuable intelligence sharing. Huawei has repeatedly denied the U.S. allegations.

Huawei Vice President Victor Zhang said: "It's clear that market position, rather than security concerns, is what underpins America's attack on Huawei. The committee was given no evidence to substantiate security allegations."

Britain has said Huawei's involvement will be capped at 35% and it will be excluded from the network's sensitive core.

Last month, the Daily Telegraph newspaper reported that, in the wake of the coronavirus crisis, Prime Minister Boris Johnson had asked officials to plan to reduce China's involvement in British 5G infrastructure to zero by 2023.

"I do hope that as the government refines its decision, that if it doesn’t reverse it outright, it will mitigate it and minimise the use of Huawei technology, put it on a shorter time frame," Cotton said.

"I would welcome that decision to go to zero by 2023 and I would urge you to try and do so even sooner."

Since Britain's decision on Huawei, relations between London and Beijing have grown tense over the situation in Hong Kong.

On Tuesday, Britain said Beijing should step back from introducing a national security law in Hong Kong which it said was in breach of the 1984 agreement marking the handover of its former colony to China.

China is using telecoms giant Huawei to try to drive a wedge between Britain and the United States, Republican senator Tom Cotton told British lawmakers on Tuesday.

China is using telecoms giant Huawei to try to drive a wedge between Britain and the United States, Republican senator Tom Cotton told British lawmakers on Tuesday. Also read: US President Trump poses for cameras with bible in hand amid riots Cotton is one of several members of the U.S. Congress who have sought to put pressure on Britain to reverse its January decision to give China's Huawei a limited role in building Britain's 5G networks. "It is my hope that the special relationship remains strong although I fear China is attempting to drive a hi-tech wedge between us using Huawei," Cotton told the British parliament's defence committee. The United States has raised security concerns about Huawei equipment, saying it could be used to steal Western secrets, and has warned that allies that use it in their networks risked being cut off from valuable intelligence sharing. Huawei has repeatedly denied the U.S. allegations. Huawei Vice President Victor Zhang said: "It's clear that market position, rather than security concerns, is what underpins America's attack on Huawei. The committee was given no evidence to substantiate security allegations." Britain has said Huawei's involvement will be capped at 35% and it will be excluded from the network's sensitive core. Last month, the Daily Telegraph newspaper reported that, in the wake of the coronavirus crisis, Prime Minister Boris Johnson had asked officials to plan to reduce China's involvement in British 5G infrastructure to zero by 2023. "I do hope that as the government refines its decision, that if it doesn’t reverse it outright, it will mitigate it and minimise the use of Huawei technology, put it on a shorter time frame," Cotton said. "I would welcome that decision to go to zero by 2023 and I would urge you to try and do so even sooner." Since Britain's decision on Huawei, relations between London and Beijing have grown tense over the situation in Hong Kong. On Tuesday, Britain said Beijing should step back from introducing a national security law in Hong Kong which it said was in breach of the 1984 agreement marking the handover of its former colony to China.

China is using Huawei to drive a wedge in the UK-US special relationship: Senator

China&nbsp;on Thursday unveiled a&nbsp;new&nbsp;list of import&nbsp;tariff&nbsp;exemptions&nbsp;for six&nbsp;chemical&nbsp;and&nbsp;oil&nbsp;products&nbsp;from the United States, days after the world's two largest economies announced a <a href="https://www.wionews.com/world/phase-one-trade-deal-reached-with-us-china-268186">Phase One&nbsp;trade deal</a>.

The&nbsp;exemptions&nbsp;will be for one year from December&nbsp;26, the Finance Ministry said, without providing a value for the imports excluded from duties.

Duties already imposed on&nbsp;US&nbsp;products&nbsp;would not be refunded, the ministry added.

The&nbsp;tariff&nbsp;waivers will apply to four&nbsp;chemical&nbsp;products, such as metallocene high-density polyethylene (HDPE) and a special grade of linear low-density polyethylene (LLDPE), and refined&nbsp;oil&nbsp;products&nbsp;that include white&nbsp;oil&nbsp;and food-grade petroleum wax.

Kelly Cui, principal analyst with consultancy Wood Mackenzie, said the&nbsp;exemptions&nbsp;on the&nbsp;chemical&nbsp;products&nbsp;would benefit companies such as <a href="https://www.wionews.com/world/france-bans-two-us-pesticides-citing-risk-to-bees-266292">Dow&nbsp;Chemical&nbsp;Co</a>, <a href="https://www.wionews.com/business-economy/failed-exxon-talks-left-petrobras-stranded-for-auctions-report-261167">Exxon Mobil Corp</a> and Chevron Phillips&nbsp;Chemical&nbsp;Co, which have since 2017 been adding shale-based ethylene production facilities and targeting&nbsp;China&nbsp;as the prime export market.

Cui also pointed out that the listed&nbsp;products, metallocene HDPE and LLDPE, were high-end special grade plastic raw materials used for packaging and pipes.&nbsp;China&nbsp;is the world's largest importer of polyethylene.

"The&nbsp;exemptions&nbsp;could see&nbsp;China&nbsp;resume buying more HDPE and LLDPE from the&nbsp;US, reversing the trade flow, as the&nbsp;US&nbsp;supplies have been diverted to Latin America and Europe while&nbsp;China&nbsp;has been importing mostly from the Middle East," said Cui.

In 2018,&nbsp;China&nbsp;imported some 6.86 million tonnes of HDPE and 4.46 million tonnes of LLDPE, according to Cui, who cited Chinese customs data. The data does not provide a breakdown for different grades of each polymer.

These imports had a combined total value of about $14 billion&nbsp;based on the delivered cost for these two&nbsp;products.

For petroleum wax,&nbsp;China&nbsp;imported from the&nbsp;US&nbsp;1,108 tonnes or worth only $3.2 million in the first 10 months of 2019, one-tenth of&nbsp;China's total imports of the product, according to Chinese customs data and consultancy JLC Network Technology.

White&nbsp;oil&nbsp;imports from the&nbsp;US&nbsp;were 3,490 tonnes or worth only $8.7 million during the same period, roughly 6 per cent&nbsp;of&nbsp;China's total imports.

China&nbsp;<a href="https://www.wionews.com/business-economy/china-to-waive-tariffs-on-some-us-soybeans-pork-266610">waived import&nbsp;tariffs</a> for some soybeans and pork shipments from the United States on December&nbsp;6, before the two sides reached a Phase One&nbsp;trade deal to cancel&nbsp;tariffs that were planned to take effect on December&nbsp;15.

China&nbsp;said it will continue to work on the <a href="https://www.wionews.com/world/china-wants-us-tariffs-rolled-back-in-phase-one-trade-deal-report-265517">product&nbsp;exemptions</a>&nbsp;and release the second batch of waivers at an appropriate time.

The <a href="https://www.wionews.com/business-economy/japan-tax-revision-targets-corporate-cashpile-to-spur-spending-5g-investment-267859">Sino-US&nbsp;trade war</a> has been a major headache for global policymakers as it slowed economic growth worldwide and chilled business investment and confidence.

US&nbsp;Trade Representative Robert Lighthizer last week acknowledged there remained hard work ahead in the next phase of <a href="https://www.wionews.com/world/as-goodwill-gesture-us-will-delay-5-boost-in-tariffs-on-chinese-imports-trump-249102">negotiations</a>.

He gave no specific timetable, but said&nbsp;U.S. President Donald Trump did not want to wait until after the 2020 presidential election to wrap up a more comprehensive agreement.

China on Thursday unveiled a new list of import tariff exemptions for six chemical and oil products from the United States, days after the world's two largest economies announced a Phase One trade deal.

China on Thursday unveiled a new list of import tariff exemptions for six chemical and oil products from the United States, days after the world's two largest economies announced a Phase One trade deal. The exemptions will be for one year from December 26, the Finance Ministry said, without providing a value for the imports excluded from duties. Duties already imposed on US products would not be refunded, the ministry added. The tariff waivers will apply to four chemical products, such as metallocene high-density polyethylene (HDPE) and a special grade of linear low-density polyethylene (LLDPE), and refined oil products that include white oil and food-grade petroleum wax. Kelly Cui, principal analyst with consultancy Wood Mackenzie, said the exemptions on the chemical products would benefit companies such as Dow Chemical Co, Exxon Mobil Corp and Chevron Phillips Chemical Co, which have since 2017 been adding shale-based ethylene production facilities and targeting China as the prime export market. Cui also pointed out that the listed products, metallocene HDPE and LLDPE, were high-end special grade plastic raw materials used for packaging and pipes. China is the world's largest importer of polyethylene. "The exemptions could see China resume buying more HDPE and LLDPE from the US, reversing the trade flow, as the US supplies have been diverted to Latin America and Europe while China has been importing mostly from the Middle East," said Cui. In 2018, China imported some 6.86 million tonnes of HDPE and 4.46 million tonnes of LLDPE, according to Cui, who cited Chinese customs data. The data does not provide a breakdown for different grades of each polymer. These imports had a combined total value of about $14 billion based on the delivered cost for these two products. For petroleum wax, China imported from the US 1,108 tonnes or worth only $3.2 million in the first 10 months of 2019, one-tenth of China's total imports of the product, according to Chinese customs data and consultancy JLC Network Technology. White oil imports from the US were 3,490 tonnes or worth only $8.7 million during the same period, roughly 6 per cent of China's total imports. China waived import tariffs for some soybeans and pork shipments from the United States on December 6, before the two sides reached a Phase One trade deal to cancel tariffs that were planned to take effect on December 15. China said it will continue to work on the product exemptions and release the second batch of waivers at an appropriate time. The Sino-US trade war has been a major headache for global policymakers as it slowed economic growth worldwide and chilled business investment and confidence. US Trade Representative Robert Lighthizer last week acknowledged there remained hard work ahead in the next phase of negotiations. He gave no specific timetable, but said U.S. President Donald Trump did not want to wait until after the 2020 presidential election to wrap up a more comprehensive agreement.

China announces new tariff exemptions for US chemical, oil products

China has demonstrated more than enough sincerity to reach a mutually beneficial deal and end trade tensions with the United States. However, trapped in hegemonic ideology, the U.S. has responded by unilateral and protectionist tariff hikes that put world economy in danger, according to a commentary published by China's Xinhua News Agency on Sunday.

China's utmost sincerity in trade talks a sign of strength

By raising tariffs on Chinese products, the United States will harm the interests of its businesses and consumers in the long term, according to Chinese economic experts at a seminar on China-US trade in Beijing on Sunday.

US raising tariffs will harm American businesses, consumers: Chinese experts