China trade slows, imports from US slump as tariffs take toll

China June trade surplus with U.S. rises 11% to $29.92 billion

China June trade surplus with U.S. rises 11% to $29.92 billion

Liang's complaint came a day after Trump accused Beijing of "letting us down" by not promptly buying more USA farm products. Its exports to the USA fell by a sharper 7.8% in June, compared with a decline of 4.2% in May.

China has sufficient policy tools and new measures to further optimize its foreign trade structure and deepen ties with new markets, especially those involved in the Belt and Road Initiative, in the second half of the year, a senior customs official said on Friday. Analysts believe the downtrend was caused by concerns regarding the potential re-escalation of the China-U.S. trade war.

Imports fell 7.3 percent, a sharper drop than the 4.5 percent forecast by analysts and following a 8.5 percent contraction in May, suggesting domestic demand remains tepid despite a flurry of growth boosting measures since previous year.

So far, Beijing has relied on a combination of fiscal stimulus and monetary easing to weather the slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies.

Board of Governors of the Federal Reserve System.

But the economy has been slow to respond, and business confidence remains shaky, weighing on investment.

It is unclear if Trump's statements are legitimate at this point since the Chinese government previously denied White House claims that it reneged on commitments that were part of the trade talks. The economy grew 6.6 per cent past year.

US President Donald Trump and Chinese President Xi Jinping held various trade talks during the G20 summit.

Importers of American soybeans and other goods are trying to switch to Brazilian, Russian and other sources, but supplies are limited and costs are higher.

Trump denies that the U.S. was in a trade war with China in April, although the government subsequently increased tariffs on Chinese imports, while Beijing reacted in a similar way.

No timeframe has been set for the new round of trade talks, and the world's two largest economies remain at odds over significant issues needed for an agreement, raising the risk of a much longer and costlier battle.

Trade with economies involved in the BRI outpaced total trade in the first half of this year, customs officials said, while imports from and export to BRI markets reached 4.24 trillion yuan. Analysts had forecast a surplus of $44.65 billion for June. Globally, China's exports fell 1.3 percent in June from the same period past year, while imports dived 7.3 percent, according to official data from the customs administration.