Trade war|China and the United States are currently negotiating their trade relations in London.
Trade war The effect was reflected in China’s exports in May. Export growth slowed down to the lowest three months, says the news agency Reuters. The reason for this was the import duties prescribed by the United States.
At the same time, the value of China’s exports to the United States plummeted by 34.5 percent from the previous year. It was a steepest drop since February 2020, when the corona pandemia, which broke out in China, cooled the world trade.
Still, the value of the overall export of China increased by 4.8 percent from the previous year. However, growth was slower than in April, when the total value of China’s overall export increased by 8.1 per cent.
Chinese still succeeded in April to increase their export value because goods were rushed to the US before the president Donald Trump announced his gigantic customs package to the world’s lands at the beginning of the month.
In addition, the growth figures for April exports were also partly explained by the fact that a year ago, the export number in China was quite poor a year ago.
Trump placed a total of 145 % Customs in early April for the supply of goods from China. China responded to this by, in turn, a total of 125 % Customs to the United States.
In the mid -May, the countries agreed in the Switzerland negotiations to lower the customs levels for 90 days. However, the duties in force for over a month have already clearly vaccinated the value of Chinese exports.
China And the United States will try to negotiate their trade in London on Monday in London. The aim of the countries is to achieve an agreement in their trade relations to avoid the return of the 90 days of the frozen giant duties.
The US side negotiations are led by the Minister of Finance Scott Betting. Chinese negotiators in London will be led by the Deputy Prime Minister of the country He Lifeng.
The United States is the world’s largest economy and China is the second largest. The economies of both countries will inevitably suffer if the trade war between them does not decline more permanently. The world economy is also suffering from military trade policy in the US.