General

The Sino-US trade war is coming to an end, and the trade between the two countries does not decrease but increases

In 2019, the then-U.S. President Trump unreasonably increased my country's tariffs on US trade goods by 15%, and the Sino-US trade war has officially started.

Although China and the United States are still fighting a trade war, their trade has not decreased but increased.

Sino-U.S. trade does not fall but increases

According to the analysis of the General Administration of Customs, my country's imports and exports with major trading partners such as ASEAN, the European Union and the United States all increased in the first half of the year. The United States is China's third largest trading partner. The total value of Sino-US trade is 1.44 trillion yuan, an increase of 50.3%, accounting for 12.4%.

Among them, exports to the United States were 1.05 trillion yuan, an increase of 49.3%; imports from the United States were 393.05 billion yuan, an increase of 53.3%; the trade surplus with the United States was 653.89 billion yuan, an increase of 47%.

China's foreign trade imports and exports have maintained a positive year-on-year growth for 13 consecutive months, and the volume of import and export trade with the United States has reached 2.21 trillion yuan, an explosive increase of 34.6%.

Some analysts believe that Sino-US trade provides support for approximately 2.6 million American jobs.

As the center of global manufacturing, China has huge advantages in terms of economies of scale, level of infrastructure, or advanced scientific and technological research and development capabilities.

In particular, the recent fall of the epidemic in Southeast Asia has caused most orders to flow back to China.

In fact, the gap between China and the United States is narrowing. In 2020, the US GDP ranked first with 20,9366.6 billion U.S. dollars, and China ranked second with 1,472,731 million U.S. dollars. Compared with 2019, the gap has narrowed by 567.181 billion U.S. dollars.

Many allies increase cooperation with China

China's rapid economic recovery in the post-epidemic era has enabled countries to see China's strength. Some "pro-American" countries have also increased their cooperation with China due to economic relations.

The Bank of Indonesia recently announced a memorandum of understanding signed with the People's Bank of China. The two sides will officially launch the Indonesian-Chinese local currency settlement mechanism starting September 6.

This move is an important milestone in the deepening of monetary and financial cooperation between the central banks of the two countries. It will help to form a direct quotation between the Indonesian rupiah and the renminbi, expand the use of local currency in the economic and trade exchanges between the two countries, and promote trade and investment facilitation.

According to Yonhap News Agency, the South Korean Broadcasting and Communications Commission stated that the amendment to the "Telecommunication Business Law", known as the "Anti-Google Law," was formally implemented on the same day, and measures such as additional tax collection standards and banned reviews will be finalized in the future.

Turkey recently signed a new US$3.6 billion currency swap agreement with China, and the existing currency swap arrangement limit between the two countries has been increased from the original US$2.4 billion to US$6 billion.

This agreement will enable Turkey to more settle trade settlements in local currencies, avoid the use of U.S. dollars, and thereby support the country’s central bank’s reserves.