China's surplus with the United States widened in April, underlining an imbalance between the economic titans as they struggle to reach an agreement on averting a potentially damaging trade war.

The figures Tuesday will likely reinforce Washington's determination after high-level talks in Beijing last week ended with both sides admitting there were big differences to overcome, with threats of tariffs on billions of dollars of goods casting a shadow.

The record imbalance is at the heart of US President Donald Trump's anger at what he describes as Beijing's unfair trade practices that are hurting American companies and destroying jobs.

Customs data showed the surplus grew 4.2 percent on-year to $22.2 billion last month, with exports rising by a tenth and imports up more than 20 percent.

Compared with March, the surplus was up 43.9 percent, though analysts say seasonal factors such as Chinese New Year had dampened exports for the month.

Attention now turns to a visit next week by a delegation led by Chinese Vice Premier Liu He -- considered President Xi Jinping's right-hand man on economic issues -- hoping to iron out the differences.

However, there are concerns about the chances of success.

"We don't expect all core differences in the US-China trade relationship to be resolved," Wang Tao, chief China economist in Hong Kong for UBS, wrote in a recent report.

"Lingering trade tension and uncertainty will likely negatively affect China's export orders and related business investment," he said, according to Bloomberg News.

China ranks 110th, or "mostly unfree", on a global ranking of economic freedom put out by the conservative American think tank Heritage Foundation.

The two countries have been engaging in high-stakes negotiations to head off the threatened tariffs -- Washington has targeted $150 billion in Chinese imports while Beijing put $50 billion of US goods on the firing line.

China's trade with the wider world also continued improve, Tuesday's figures showed, after it posted a rare deficit in March.

Exports surged 12.9 percent on-year, while imports rose 21.5 percent -- both figures beating expectations.

"The data suggest that foreign demand for Chinese goods has started to soften, with the prospect of possible US tariffs weighing on the outlook," said Julian Evans-Pritchard, China Economist at Capital Economics, in a note.

The strong import figures point to growing demand within China, a boon for the country's transition to consumption-fuelled growth from a decades-long dependence on exports and investment, analysts say.

"While softer foreign demand is being largely offset by domestic strength for now, the headwinds to growth from slower credit creation look set to increase," said Evans-Pritchard.

China vice premier to visit US for trade talks: White House
Washington (AFP) May 8, 2018 - China's top economic official will visit Washington next week to continue trade discussions, the White House said Monday, as threatened tariffs on billions of dollars of goods could be imposed this month.

The visit by Vice Premier Liu He -- considered President Xi Jinping's right-hand man on economic issues -- comes after he led talks in Beijing last week with a high-level US delegation that made little headway in resolving the standoff.

The meetings come after a series of tit-for-tat threats of tariffs on billions of dollars of goods sparked earlier this year by Donald Trump, who accuses China of using unfair practices to get an unfair advantage over US exporters and costing American jobs.

"China's top economic advisor, the vice premier, will be coming here next week to continue the discussions with the President's economic team," said White House press secretary Sarah Sanders.

"The president has a great relationship with President Xi," Sanders said. "And we are working on something that we think will be great for everybody."

The negotiations could head off the threatened US tariffs targeting $150 billion in imports from, while China has warned $50 billion in goods are in the firing line. Some of the US measures are due to take effect before the end of May.

However, China said "big differences" remained between the two sides after last week's talks while leaks of the negotiating positions showed both were digging in with hardline demands.

The row has fuelled worries about a trade war between the economic superpowers that has the potential to hammer the global economy.

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Trump says China 'spoiled' by trade wins over US
Washington (AFP) May 5, 2018
China is "very spoiled" by trade wins over America, US President Donald Trump said late Friday, as a top business delegation headed back to America after high-stakes talks with Beijing. The two days of talks were aimed at forestalling momentum towards a looming conflict between the world's two largest economies, with both sides prepared to pull the trigger on tariffs that could affect trade in billions of dollars of goods. "Our high level delegation is on the way back from China where they had l ... read more