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China 's foreign trade slumps TIME ONLINE

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The impact of the trade war between China and the USA are noticeable for both countries. Trade between the two largest
Economies slumped 14.6 percent last year. This is shown by calculations by Chinese customs. According to this, imports of goods from the United States to China decreased by 20.9 percent to $ 122 billion, exports from the People's Republic to the United States decreased by 12.5 percent to $ 418 billion.

Overall, the Chinese went foreign trade for the first time back by one percent – after two years in a row with double-digit growth rates.
Exports grew only slightly by 0.5 percent overall, but fell
imports by 2.8 percent.

However, foreign trade has recently recovered slightly: in December it rose by 11.3 percent compared to the same month in the previous year. Imports increased by 16.3 percent, exports rose by 7.6 percent.

China released the trade figures one day in front
the planned signing of the partial agreement with the USA
, which should ease the tension in the trade war and regulate the key points for a first phase of rapprochement. China's chief negotiator and Vice Premier Liu He traveled to Washington with a large delegation. According to the United States In the agreement, the People's Republic is to commit to reintroducing US $ 200 billion worth of goods from the United States over the next two years.

The US president wants 40 billion of them Donald Trump use for American agriculture. The farmers are an important group of voters for him, after all, the US election is due again in November. China is also expected to commit to finished goods for around $ 75 billion
buy as well as for $ 50 billion in energy and for 35 to 40
Billions of dollars in services, US media reported. According to insiders, China intends to significantly more American cars and planes, agricultural machinery, medical devices and semiconductors, and agricultural and
Buy energy products. China is also expected to commit to buying US agricultural goods by around 32 billion within two years
To raise dollars.

A further partial agreement could only follow after the US presidential election

In addition, it should include agreements on intellectual property,
Technology transfer and exchange rates. In return, the
 USA already in December on imposing new punitive tariffs
 on consumer goods worth $ 150 billion.

Further
Customs duties of 15 percent on Chinese goods worth 120
Billions of dollars are to be halved. In addition, the US does not rank China
more than a currency manipulator
, The already since
Special taxes of 25 percent imposed on goods worth 250 in 2018
However, billions of dollars should remain.

The ongoing punitive tariffs are crucial for Trump. Because it is planned to negotiate an agreement for a second phase of relaxation in the trade dispute with China. The US president sees an ideal time for this after the November election.

According to economist Max Zenglein from the China Institute
 Merics in Berlin, the trade conflict with the United States severely affects the Chinese economy. "The tariffs already imposed by the USA have hit China 's exports. Because the USA is one of the most important sales markets for
the country, this is also increasingly depressing total exports. "

The decline in imports can also be reduced by the slower growth in China
 state that this has led to less demand for foreign products. In addition, the weaker exchange rate of the yuan against the
US dollars over long distances 2019 foreign goods and the expensive
Slowed demand. Nevertheless, growth of more than six percent is expected for this year.

Zenglein emphasized that exports are very important for China. A slump in foreign trade could do that
Economic growth therefore "slow down more quickly and faster than the
Government is dear ". Also, this could be dependent on exports
Regions lead to rising unemployment, which increases the pressure on the government. So far, companies have been trying
with tax breaks and social security cuts
support. Beijing is also trying to trade with the
to strengthen Southeast Asian countries.

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