China's Trade Surplus With the US hits record high

A worker sorting canned peaches for export at a factory in Xiayi in China's central Henan province

A worker sorting canned peaches for export at a factory in Xiayi in China's central Henan province

"They are just a trade bully", he told reporters in Geneva.

China's monthly trade surplus with the United States hits a record high in June, amid a bitter trade dispute between the world's two largest economies.

In the first half of the year, Chinese exports to the USA increased 13.6 percent as compared to the same period in 2017, while imports from the US only rose 11.8 percent.

Trump's advisers are attempting to open Chinese markets to foreign companies and reduce what they see as unfair subsidies that have given rise to a $340bn annual trade deficit with China.

But in a statement from its commerce ministry, China blamed those problems on the USA, saying the imbalance was "overestimated" and caused by America's own "domestic structural problems".

Statistics showed that in the first six months of the year, China's exports to the United States rose 13.6 percent from a year earlier, while imports from the U.S. increased by 11.8 percent.

Exports rose 11.3 per cent over a year earlier to $216.7 billion, down from May's 12.6 per cent growth, customs data showed Friday.

The figures come a week after the trade war between the two began, with the U.S. imposing tariffs on $34bn of Chinese goods, and China retaliating.

Donald and Melania Trump meet Queen Elizabeth for tea at Windsor Castle
Vickers expects the royal visit to go smoothly despite the many controversies swirling around Trump's visit to the U.K. Trump then took a turn with the Queen to inspect the Guard before the whole party headed inside for afternoon tea.

Analysts expect shipments growth to slow in the second half of the year, putting more strain on an economy already feeling the pinch from a multi-year debt battle that has driven up corporate borrowing costs.

"Looking ahead, export growth will cool in the coming months as U.S. tariffs start to bite alongside a broader softening in global demand", Julian Evans-Pritchard, the senior China economist at Capital Economics in Singapore, said.

In yuan terms, China's exports grew 3.1% in June and imports rose 6.0%.

"So we would be back to square one", Mr Kuo said, with China exporting more to the U.S. than it buys from the country.

Speaking after a regular two-yearly review of China's trade policies at the World Trade Organization (WTO), Wang was sceptical.

In June the surplus with the USA was at $28.97 billion, up from $24.58 billion in May, according to Reuters calculations based on customs data released on Friday.

For January-June, it rose to $133.76 billion, compared with about $117.51 billion in the same period previous year. China retaliated with higher duties on a similar amount of American goods.

Others say the latest data shows how hard it will be for the United States to win the trade war, arguing that Americans want to buy Chinese-made products.

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