US-China trade plunges by 20% in the first two months of 2019

The volume of trade between the world’s two largest economies, the United States and China, dropped to $76.5 billion in January-February, according to data by China’s General Administration of Customs.

The figure is 20 percent lower than for the same period of last year. At the same time, the trade deficit between the countries narrowed to $42.1 billion, after reaching almost $30 billion in December alone. Statistics showed that Chinese exports to the United States decreased by 14.1 percent in the first two months of the year to $59.295 billion. The US exported just $17.18 billion worth of goods in China, down 35 percent from January and February 2018.

The two nations have recently started laying out a deal to put an end to their seven-month trade dispute. US President Donald Trump noted significant progress in negotiations, writing on Twitter that he decided to postpone the increase of tariffs on Chinese goods which was planned for March 1.

China’s Ministry of Commerce has also noted significant progress in the transfer of technology, protection of intellectual property, non-tariff barriers, and the service sector.

Washington has repeatedly accused Beijing of stealing trade secrets, forcing foreign companies to hand over technology as the price of access to the Chinese market, and subsidizing its own tech companies. As part of the standoff, Washington imposed tariffs on $250 billion in Chinese imports. Beijing retaliated with levies on $110 billion in US goods.

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