China's Oil Imports Jump To 4-Month High In September

White House National Economic Council Director Larry Kudlow holds a news briefing

Trump says Chinese 'lived too well for too long'

China's trade surplus with the United States surged to a record high of $34.13 billion in September, compared with $31.05 billion in August, Chinese customs data showed on Friday.

The September surplus with the US was larger than China's overall trade surplus for the month.

China's large trade surplus with the United States has always been a sore point with Washington and is at the center of an increasing bitter dispute between the world's two biggest economies. "We expect the dynamic to change once we get a bit deeper into this, but for now China is trying to outrun the next round of tariffs".

A cargo ship is seen at a port in Qingdao in China's eastern Shandong province on Friday.

Trump accused China of thinking Americans are "stupid" and boasted that his tariffs had already "had a big impact" on China's stumbling economy in a Thursday interview on Fox News.

The trade feud has been fueled by USA accusations that China coerces foreign companies into handing over technology in return for access to the Chinese market, as well as by China's trade surplus with the U.S.




Export numbers have been buoyed by producers rushing to fill orders before American tariffs rose, but they also benefit from "robust USA demand" and a weaker Chinese currency, which makes their goods cheaper overseas, Louis Kuijs of Oxford Economics said in a report.

Beijing's exports to the United States have at least temporarily defied forecasts they would weaken after being hit by punitive US tariffs of up to 25 per cent.

U.S. President Donald Trump would go through with plans to meet with Chinese President Xi Jinping at the G20 summit next month if it looked like it would be a positive meeting, U.S. Treasury Secretary Steven Mnuchin said on Friday.

China has steadfastly denied that it has manipulated the yuan to cope with the tariffs. The Chinese currency has been falling in value against the dollar in recent months, raising concerns that Beijing is devaluing its currency to make Chinese goods more competitive against US products.

The yuan has lost almost 10 percent of its value against the U.S. dollar this year. "Their economy has gone down very substantially and I have a lot more to do if I want to do it". "I don't want to do it but they have to come to the table", he warned.

The growing trade war prompted the International Monetary Fund on Tuesday to cut its global economic growth forecasts for 2018 and 2019.

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