Beijing/Washington: China, refusing to retreat in the trade war against the United States, has been hit by a major decline in trade. In August, Chinese imports declined by 22%, and exports declined by 16%. Local sources informed that along with the United States, Chinese exports at the international level also have reportedly declined by 3%. In the meantime, US economic advisor, Larry Kudlow has warned it will take many years to resolve the US-China trade war.
Only last month, US President Donald Trump announced the imposition of tax on the entire Chinese goods imports, worth $55 billion. Before that, China too, had announced the imposition of tax on US goods imported into China, at 5% to 10%. Although the new taxes were implemented only in September, both the countries have already imposed taxes on goods worth billions of dollars. It has been repeatedly observed that the Chinese economy is the one, being hit in the trade war, and this new statistic clearly confirms this.
In August, China imported goods worth $10.3 billion in bilateral trade with the United States. This is a 22% decline compared to the same period last year. As per the information published by China, there was an export of Chinese goods worth $44.4 billion to the United States. There is a 16% decline in exports compared to the last year.
Last month, some of the US media had claimed that the economic and trade statistics, published by the Chinese government, are misguiding. It was claimed that the actual figures show a much higher decline in the Chinese economy. While claiming this, attentions is being drawn to the decline in Chinese exports at the international level, constantly declining industrial index and the layoff of 5 million employees.
Now the figures published by the Chinese government itself, are exposing the hit taken by the Chinese trade, in the international market, including the United States. Therefore, there are indications that nothing is well in the Chinese economy, and an economic crisis is brewing in China.
Meanwhile, Larry Kudlow the economic advisor to US President Donald Trump has warned that the trade war with China, will not end soon. Kudlow said that although trade negotiations will be held in the next month, there is little or no hope that a solution will be evolved. The US economic advisor has indicated that the trade war will intensify further saying that it will take long years to find a solution to the US-China trade war.