The customs dispute with the US and slower economic growth have weighed on the Chinese foreign trade to the end of the year. Exports declined in December by 4.4 percent compared to the same month last year, for the past two years, such as the customs Bureau said in Beijing. The imports fell by as much as 7.6 percent lower.
experts had expected a weak result, but in both the From and the imports are expected to be a Plus. The data suggest that after the USA the second largest economy in the world at the end of the year, could more have lost their momentum, as was previously assumed. The government is trying, with a series of measures to counteract from higher infrastructure spending cuts to tax.
all the same, The total year 2018, China has become regarded to its reputation as the world’s export champion and has increased its exports so strongly as since 2011 no more. They grew according to the customs authority by 9.9 percent in comparison to 2017. Imports increased 15.8 percent, which is much stronger.
trade Surplus with the United States
further, The trade surplus shrank in the past year by 16.2% to approximately 352 billion dollars. This is the lowest value since 2013. However, looking at the trade with the United States, the Surplus of China has increased significantly – by 17.2 percent to 323.3 billion dollars. The exports to the United States increased the official Chinese Figures show that in 2018, up by 11.3 percent. China’s imports from the USA increased by only 0.7 percent.
This could be a further potential for conflict. The Chinese trade surplus is US President, Donald Trump has long been a thorn in the eye. The two largest economies in the world therefore, since months ago in a Trade dispute and plated since that time to each other with a series of punitive tariffs. Trump accuses China of unfair trade practices and theft of intellectual property.
China wants growth targets down screws
in view of the customs dispute and the slowdown in the world economy China in 2019 wants to set a less ambitious growth target. The leadership will probably aim for a rise in the gross domestic product of 6 to 6.5 percent, told the Reuters news Agency from the political circles. For 2018, the government is still an increase of “about 6.5 percent had spent” as the target.
The trade dispute with the US has 2018, according to a study on China’s investments in Europe and North America. The people’s Republic has moved back, therefore, your investments in the past year by almost three quarters. The direct investment totaled only $ 30 billion, after it had been in 2017 111 billion dollars, is the conclusion of an investigation the law firm of Baker & McKenzie with the Institute and Rhodium Group.
in the U.S. Alone, there had been a decline of 83 percent, was due to the trade conflict and political tensions between the world’s two largest economies. Also in Europe there is a significant decline. However, Germany, France and Spain were able to attract against the Trend of more Chinese investment.
by Contrast, had been blown off in North America, due to stricter regulatory requirements and more than 14 Chinese investments with a total volume of four billion dollars. In Europe, there had been seven in the value of 1,5 billion dollars. More stringent investment controls in the people’s Republic had contributed to the decline.
Beijing relaxes rules on investment in its financial sector
At the same time, China wants to modernize its financial sector. So the leadership in Beijing has loosened the rules for investment by foreign companies in the trillion-heavy financial sector. Foreign investors are now expected to invest a total of up to $ 300 billion (261 billion), informed the Chinese government. The previous limit was doubled. Recently, China had increased the Limit in 2013, from 80 to 150 billion dollars. According to calculations by the news Agency Bloomberg, the direct investment by foreign financial corporations had the amount of Chinese companies in the sector to slightly more than 100 billion dollars.
The second largest economy in the world was only lifted last summer, the restrictions on the investments of financial companies from abroad to domestic banks and asset managers. Previously, foreign banks were allowed to individually with a maximum of 20 percent of a Chinese Institute to participate – the threshold for consortia was 25 per cent.