After the tone in the trade conflict between the USA and China became rougher again, representatives of the two largest economies are now negotiating directly. There are already massive changes in China’s exports.
Shortly before the start of new negotiations between the United States and China, recent trading numbers have illustrated the effects of the customs dispute between the two countries. The trade between the two largest economies collapsed according to the Chinese customs data in May. As stated from the communications from the authority, corresponding and imports fell significantly as in April.
In May, exports in US dollars were calculated by 34.5 percent compared to May 2024, while imports decreased by 18.1 percent.
Overall, China’s economy was able to increase its exports in May thanks to the increased exports to other regions – including Germany. A persistent dispute would probably lead to many Chinese goods being diverted, such as to Europe.
In May, however, the entire exports from China were slowly increasing as they had not been in three months.
New conversations in Great Britain
It is therefore eagerly awaited the results of the trading talks planned in London, according to the corresponding reports began in London in the early afternoon. Beijing sent Vice Prime Minister He Lifeng to Great Britain. From Washington, Finance Minister Scott Bessent, Minister of Commerce Howard Lutnick and the trade officer Jamieson Greer are sitting at the table.
US President Donald Trump and the Chinese state and party leader Xi Jinping had agreed the meeting on Thursday on a phone call.
China and the United States had spoken to each other in Geneva in mid -May for the first time since the escalation in the customs dispute. At that time, both sides agreed to temporarily lower their tariffs for 90 days.
Finally, however, the sound became rougher from both sides.
China has strong pressure
Trump had increased the surcharges on goods from China in April to up to 145 percent. With counter -tariffs on imports from the USA, Beijing followed 125 percent and imposed export control.
Such measures for certain rare earths are likely to be the focus of the negotiations. The industry needs these raw materials, for example, for electric motors and sensors. China dominates the world market for why the export restrictions on companies had triggered concern worldwide.
The United States wants to achieve a fundamental agreement on rare earths during trade talks with China. There should be a kind of handshake agreement in the negotiations in London, said Kevin Hassett’s economic advisor. Export checks are expected to relax immediately after the handshake and the rare earths were released in large quantities.
US government agents had repeatedly accused China that the People’s Republic does not comply with its commitments to deliver less frequently.
USA have great trade deficit
The United States imported significantly more than they export. According to the government, the country exported in 2024 worth a good $ 143 billion to China, in return there were worth $ 439 billion to the United States. This results in a trade deficit of almost $ 300 billion, against which Trump tries to act with tariffs. China, on the other hand, drives its economy with exports and imported – also because of the weak demand in the People’s Republic.
Beijing, on the other hand, could address the US restrictions on the sale of important technology products to China. The People’s Republic is still dependent on computer chips or important components in the aviation industry.
