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China Daily Website

Sino-US trade gap narrows

Updated: 2013-08-08 01:54
By ZHANG YUWEI ( China Daily)

In 2012, the report said, 262 congressional districts (60 percent of the total) increased exports to China. Between 2003 and 2012, 401 congressional districts (92 percent) experienced triple-digit growth.

Growth in exports to China also outpaced growth in the majority of districts' exports to other markets, with 249 districts out of 435 having higher growth in exports to China in 2012 than to the rest of the world.

Even smaller states have seen significant growth in exports to China. Shipments from Vermont, Connecticut, Hawaii and Delaware have recorded at least 400 percent growth since 2003.

"Integrated bilateral trade between the US and China, thanks to the globalization of supply chains, has made China a top export destination for US manufacturers, supporting a broad range of US producers regarding industrial supplies and capital goods,"said Weng.

Stronger US economic growth will lead to solid US imports from China, said Weng, adding that the US has outperformed other major developed countries since 2009.

"We expect US economic growth to accelerate in the second half of this year, assuming fiscal headwinds dissipate gradually, in which case China's exporters would benefit,"said Weng.

The Commerce Department figures show the US trade deficit narrowed sharply in June to its lowest level in nearly four years, indicating a stronger outlook for second-quarter growth.

Guo said net exports looked much more favorable for growth in the second quarter than the advance GDP of 1.7 percent estimated by the US Bureau of Economic Analysis last week.

The trade gap fell 22.4 percent to $34.2 billion, the smallest since October 2009. The percentage decline was the largest since February 2009.

The strong trade figures showed the US economy is getting back on track from the 2008 financial crisis. A stronger economic outlook in the US is also pushing forward the US Federal Reserve's plan of tapering off the $85-billion-a-month bond-purchase program, known as quantitative easing.

Weng said the tapering of the QE3 program will mostly be based on US unemployment figures rather than GDP.

"The job figure (162,000) in July wasn't too bad, but we still need to see what August looks like,"she said.

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