United States:China has never deliberately pursued trade surplus with United States, Shu Jueting, commerce ministry spokesperson said, despite signs that China is continuing to reduce its reliance on American exports.

Although American export data published on February 7 shows that exports to China increased by $ 2.4 billion on year to hit “Record high” of $ 153.8 billion in 2022 that is an “Empty statement”, according to new report from Peterson Institute for International Economics (PIIE). It identifies inflation as primarily responsible for this figure.

In response to question from Reuters on whether Chinese officials should be worried that widening surplus with United States could hinder China’s efforts to lower US tariffs on Chinese goods, Shu said United States should “Lift trade restrictions on Chinese enterprises as soon as possible”.

She said this was needed to “Create conditions for enterprises from both sides to expand trade cooperation and reduce trade deficit through dialogue”. Goods trade gap with China widened $ 29.4 billion to $ 382.9 billion in 2022.

“Based on market demand, Chinese enterprises import large amount of agricultural products, automobiles, science and technology, energy and petrochemical products,” Shu added, asserting that “China’s exports have reduced inflation in US.”

Researchers at PIIE have cautioned that “Newly released data from 2022 show that US exports are falling further and further behind their foreign peers selling into Chinese market”. Trade tensions between United States and China have been simmering ever since US-China Phase One Trade Deal expired at end of 2021.

Published in The Daily National Courier, March, 24 2023

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.