China imports from US tumble by almost one fifth

A container ship at a port in Qingdao in eastern China’s Shandong province. Chinese imports of American goods plunged in July as a tariff war with Washington intensified. (AP)
Updated 08 August 2019

China imports from US tumble by almost one fifth

  • Beijing has retaliated for US tariff hikes in a dispute over trade

BEIJING: Chinese imports of American goods plunged in July as a tariff war with Washington intensified. Imports of US goods fell 19 percent from a year earlier to $10.9 billion, customs data showed Thursday, though that was an improvement over June’s 31.4 percent fall. Exports to the US declined 6.5 percent to $38.8 billion.

Beijing has retaliated for US tariff hikes in a dispute over trade and technology by imposing its own punitive duties and suspending purchases of American soybeans and other goods.

The latest data follow President Donald Trump’s threat last week to extend punitive duties to an additional $300 billion of Chinese imports. China’s total exports rose 3.3 percent over a year earlier to $221.5 billion, rebounding from June’s 1.3 percent contraction amid weakening global consumer demand. Imports shrank 5.6 percent to $176.4 billion, an improvement over the previous month’s 7.3 percent decline.

“Shipments in and out of China held up better than expected last month, but a sustained turnaround still looks unlikely in the near-term,” said Julian Evans-Pritchard of Capital Economics in a report.

China’s central bank rattled global financial markets this week by allowing its yuan to weaken to an 11-year low against the US dollar. That would make Chinese goods less expensive abroad but the currency’s 5 percent decline this year against the dollar is too small to completely offset US tariffs of 25 percent.

China’s global trade surplus widened by 60 percent over a year ago to $45.1 billion.

The surplus with the US was little changed but stood at $28 billion, a level that might fuel American pressure for Chinese concessions in trade talks.

Washington and Beijing are locked in an increasingly costly tariff war over US complaints China steals or pressures companies to hand over technology. The US and other Chinese trading partners complain Beijing’s plans for government-led development of global competitors in robotics and other fields violates its market-opening commitments.

Trade has weakened since Trump started hiking tariffs on Chinese goods last June. Beijing retaliated with its own penalties and ordered importers to find non-US suppliers.

Trump and President Xi Jinping agreed in June to resume negotiations but talks last week in Shanghai ended with no sign of agreement. Envoys are due to meet again next month.

Economists warn the truce is fragile because the two sides still are separated by the disagreements that caused talks to break down in May.

Trade weakness has added to pressure on Xi’s government to shore up economic growth and avoid politically dangerous job losses.

Beijing agreed last year to narrow its trade surplus with the US by buying more American natural gas and other exports but scrapped that plan after one of Trump’s tariff hikes. The Chinese government said in June that any purchases must be at a reasonable level, suggested Beijing was becoming more cautious about making big commitments before it sees what Washington offers in exchange.

Saudi companies display latest technologies at Dubai Airshow

Updated 17 November 2019

Saudi companies display latest technologies at Dubai Airshow

DUBAI: Over 25 Saudi companies and government institutions are taking part in the Dubai Airshow hoping to snag deals for their latest defense and aviation technologies being showcased at the biennial event.

The Middle East’s biggest aviation gathering opened on Sunday sans major announcements for big-ticket aircraft purchases from Gulf flagship carriers, maybe also due to dozens of deals already been previously signed and the planes just waiting to be delivered.

Among the major Saudi companies in the event include the Saudi Arabian Military Industries (SAMI), fully owned by the Public Investment Fund, which has operations from aeronautics, land systems, naval systems, weapons and missiles and defense electronics.

SAMI aims to become among the top 25 companies globally by 2030 and to localize military spending, in line with the Kingdom’s vision.

Among other notable Saudi companies and institutions with a presence at the airshow are Saudi Airlines, flynas, The General Authority of Civil Aviation and the King Abdulaziz City for Science and Technology.

Meanwhile, Saudi INTRA Defense Technologies signed a Memorandum of Agreement with multinational defense company Hensoldt for the co-development and co-production of advanced electro-optic systems, as well as a joint venture agreement with EM&E for the transfer of technology and localization of the precision mechanical industries in the Kingdom.

ESEN Saudi, a hi-tech defense and aerospace engineering and production company, was also launched at the Dubai Airshow’s opening day.

Middle East Propulsion Company, which specializes in maintenance, repair and operations (MRO) for the Middle East, was also one of the Saudi companies on site. The company, which boasts of a workforce comprised of Saudi nationals of about 80 percent, aims to expand their services across the GCC and wider Middle East region.

Al-Salam Aerospace Industries meanwhile has on display latest advancements in the manufacture of key components for the F-15 fighter jet.