Trump's tariffs are working
- Thread starter 2001400ex
- Start date
While the data showed China's trade remained strong for the month, analysts forecast the trade war will start to hurt in coming months.
China's export jump for the month suggests exporters were shipping goods early to beat the latest tariffs, said ANZ's China economist Betty Wang, citing the bounce in electrical machinery exports, much of which faced the looming duties.
"We will watch for downside risks to China's exports" in the fourth quarter, Wang said.
Analysts say a sharp depreciation of the yuan has also helped China weather the tariffs by making its exports cheaper.
"The big picture is the Chinese exports have so far held up well in the face of escalating trade tensions and cooling global growth, most likely thanks to the competitiveness boost provided by a weaker renminbi (yuan)," said Julian Evans-Pritchard, China economist at Capital Economics.
"With global growth likely to cool further in the coming quarters and US tariffs set to become more punishing, the recent resilience of exports is unlikely to be sustained," he said.
China's export jump for the month suggests exporters were shipping goods early to beat the latest tariffs, said ANZ's China economist Betty Wang, citing the bounce in electrical machinery exports, much of which faced the looming duties.
"We will watch for downside risks to China's exports" in the fourth quarter, Wang said.
Analysts say a sharp depreciation of the yuan has also helped China weather the tariffs by making its exports cheaper.
"The big picture is the Chinese exports have so far held up well in the face of escalating trade tensions and cooling global growth, most likely thanks to the competitiveness boost provided by a weaker renminbi (yuan)," said Julian Evans-Pritchard, China economist at Capital Economics.
"With global growth likely to cool further in the coming quarters and US tariffs set to become more punishing, the recent resilience of exports is unlikely to be sustained," he said.
Dude61
New Fish
China has already lost this war....
The result of this confrontation was preordained. The United States is far and away the world's largest market for consumer goods. China, which lives or dies based on exports cannot lose access to the American market and even begin to replace those sales elsewhere. There are on the other hand an almost endless number of other locations other than China, including the United States, to which manufacturers can move their factories and shift production. China was already seeing the beginnings of this shift before the trade war began. The confrontation with the United States simply intensified the trend.
https://www.zerohedge.com/news/2018-10-10/china-has-already-lost-war
The result of this confrontation was preordained. The United States is far and away the world's largest market for consumer goods. China, which lives or dies based on exports cannot lose access to the American market and even begin to replace those sales elsewhere. There are on the other hand an almost endless number of other locations other than China, including the United States, to which manufacturers can move their factories and shift production. China was already seeing the beginnings of this shift before the trade war began. The confrontation with the United States simply intensified the trend.
https://www.zerohedge.com/news/2018-10-10/china-has-already-lost-war
HillsboroDuck
New Fish
So you're saying Trump found the chink in their economic armor?
Chinteresting.
At least he found the right enemy and it isn't RUSSIA
ThomasFremont
New Fish
Of course it isn’t Russia. They’re our friends
MikeDamone
Well-known poster
Chink. LOL. I get it.
MikeDamone
Well-known poster
We?
I know right?
SarkFanSixtyNine
New Fish
What did China mean by this?https://www.nytimes.com/2018/09/28/business/china-censor-economic-news.html
MikeDamone
Well-known poster
Great, when can I expect my check?