How will the widening trade surplus with the US impact negotiations?

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Widening Trade Surplus with the US and its Negotiation Impact

The widening trade surplus between China and the United States, which reached US$104.85 billion in the first five months of 2018, presents a complex factor in ongoing trade negotiations. While specific impacts are not detailed, such a surplus typically represents a focal point in discussions regarding trade imbalances and potential policy adjustments. China's exports to the US increased by 13.6 per cent in the January-May period of 2018, contrasting with a 11.9 per cent rise in imports from the US during the same timeframe.
Widening Surplus Figures

In May 2018, China's trade surplus with the United States expanded to US$24.58 billion, an increase from the US$22.15 billion recorded in April. Over the cumulative period of January to May 2018, the surplus reached US$104.85 billion. This figure is notably higher than the approximate US$92.9 billion surplus observed during the corresponding period in the previous year, indicating a trend of growing imbalance.
Trade Dynamics in Early 2018

During the first five months of 2018, China's export growth to the United States was recorded at 13.6 per cent compared to the previous year. Concurrently, China's imports from the United States experienced an 11.9 per cent increase over the same period. These figures illustrate the overall direction of bilateral trade flows leading into subsequent negotiation rounds.
Broader Trade Performance

Beyond the specific figures with the US, China's overall trade performance in May 2018 showed solid export growth of 12.6 per cent, a slight deceleration from April's 12.7 per cent. Imports, however, grew at a faster pace, rising 26 per cent year-on-year, exceeding analyst forecasts and marking the fastest import growth since January. This broader trade context was occurring amidst escalating trade tensions and a third round of talks that concluded with limited signs of progress.

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How will the widening trade surplus with the US impact negotiations?

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