China and the United States Keep Buying From Each Other
Imports and exports out of China both rose in June, including goods traded to and from the United States. This is the first rise in Chinese imports of American products since the onset of the coronavirus.
China imported 11.3% more American goods last month than one year ago, according to the General Administration of Customs in Beijing. In May, Chinese imports were down 13.5% year over year. Meat and other agricultural products drove the rise. Chinese exports to the United States grew by 1.4% yearly in June, after falling 1.3% in May.
Chinese imports from the rest of the world rose 2.7% yearly in June, after falling by 16.7% in May. The country’s exports climbed 3.3%. This is remarkable. Not only has China’s trade activity improved since the country got slammed by the coronavirus, but it is higher than it was in 2019. This is good news for American manufacturing, port activity, and transportation, much of which utilizes imports from China.
The United States – China relationship has gotten a little messy recently, what with the treatment of Hong Kong, South China Sea territory, and heck, the coronavirus itself. On Friday, President Trump told reporters that a phase two trade deal with China is off the table, as the relationship between the two countries has deteriorated. In spite of that, it remains advantageous for both countries to keep buying products from each other.
