The dollar is heading to obtain weekly gains supported by commercial optimism
Chinese exports to America decrease by 17.6 % within one month
The official Chinese data showed, on Friday, that Chinese exports to the United States decreased by 17.6 percent last April compared to the previous month, at a time when a high -risk commercial war is taking place between Washington and Beijing.
The total value of Chinese exports to the United States amounted to $ 33 billion in April, compared to $ 40.1 billion in March, according to the data of the General Administration of Chinese customs. This means that the commercial surplus with the United States has decreased to $ 20.5 billion from $ 27.6 billion in March, which is a victory for the President of the United States Donald Trump, who repeated his desire to narrow the gap.
Trump has imposed high customs duties on China from his return to the White House and the definitions of many Chinese goods reached 145 percent. China replied with customs tasks of 125 % on the goods imported from the United States, as well as other measures of American companies.
The data also showed that the Chinese exports indicated in Russia decreased in April on an annual basis after its increase in the previous month, while the decrease in imports accelerated. The shipments issued in Russia were 1.6 percent last month on an annual basis, after increasing by 2.8 percent in March. Imports from Russia decreased by 14.1 percent in April, exacerbating a 9.8 percent reduction in March.
China is the largest commercial partner for Russia and has provided a lifewrender in Moscow who helped him to overcome the western sanctions imposed following his complete invasion of Ukraine in 2022
During the first four months of the year, Chinese exports to Russia decreased by 4.2 percent and imports decreased by 8 %. The bilateral trade value reached 510.6 billion Yuan (70.47 billion dollars) in the period from January to April.
During the talks in Cremlin, Thursday, Chinese President Xi Jinping told Russian President Vladimir Putin that their two countries should be “friends”, while they are committed to improving cooperation at a new level. XI said that China, which is currently involved in a customs definition launched by the President of the United States Donald Trump and Russia to consolidate the foundations of their cooperation and “eliminate external intervention”.
In general, Chinese exports have exceeded expectations in April, supported by the request to materials by foreign producers who quickly exported their goods to make the most of the Trump suspension of customs duties for a period of 90 days.
Chinese producers have prepared their expeditions previously issued in anticipation of taxes, but now they are betting on the talks to break the stall situation between American and Chinese officials in Geneva on Saturday on customs duties.
The customs data showed the shipment of 8.1 percent from China to April, circumventing 1.9 percent expectations in a reuters survey of economists, but slowed down from the jump of 12.4 percent March.
Imports decreased by 0.2 percent, compared to the expectations of a 5.9 percent decrease; What indicates that the local demand could be better than expected since political managers continue to take measures to support the economy of $ 19 trillion.
Exports to Southern countries -East Asia have increased by 20.8 percent in April. Chinese steel exports have exceeded 10 million tons for the second month of April, when Senior customers, such as South Korea and Vietnam, have resorted to the purchase of large quantities to avoid customs duties, which analysts expect to interrupt the profitable debit trade in China.
While global copper manufacturers rushed to the United States after Trump’s proposal to impose customs duties on the metal, the Chinese raw copper imports and its products remained stable last month.
“Asean) accelerates their production to satisfy the deadline in July, a 90 -day negotiation period,” said Dan Wang, director of the Chinese Department of the Aurasia group. Its production strongly depends on Chinese exports of raw materials and industrial inputs; So China exports have been supported. “
He added: «During the next two months, Chinese exports could continue to have strength thanks to the transfer of industrial skills, but commercial data could deteriorate very quickly if the customs duties of 145 % continue on China and Asean (with the Trump administration) has made progress.
Beijing cannot bear a commercial war with the United States and, if it does not reduce or cancel the customs duties, it can affect a serious blow to the Chinese economy, which was based on exports to advance the growth wheel in light of its struggle to recover from the shock of the pandemic and the decline of the extended real estate market.
“The damage of American customs duties in commercial data for April … and I expect commercial data to be weakened gradually in the coming months,” said Zhang, Benpint Asset Management Economist. He added: “We hope that commercial negotiations between China and the United States will soon reach an agreement and that customs tasks to reduce the shock to world trade will be reduced”.
