IDA Universal

September/October 2016

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I DA U N I V E R S A L S e p te m b e r - O c to b e r 2 0 1 6 48 China's economic roller coaster is taking a bite out of American exporters, hurting U.S. industries ranging from mining equipment to cotton producers and adding to criticism that China is getting more than it gives in trade with the U.S. The U.S. shipped just $42.4 billion to China in the fi rst fi ve months of the year, or 8.2 percent less than the year-earlier period and 13.8 percent below the peak export year of 2014, according to the Census Bureau. U.S. Exports to China Shrink, Especially for Heavy Industry Cotton companies are high on the growing list of U.S. industries and farm groups looking for customers outside China to make up for their decline in competitiveness there. Photo: Brian Snyder/Reuters The export drop comes as China's economy, while slowing, is still offi cially expanding at more than six percent a year. That growth is driven in part by the mountain of goods – worth $174 billion so far this year – the U.S. imports from China. That is quadruple the size of its exports to China during those months, and only slightly less than 2014 levels. The slowdown in U.S. exports could exacerbate accusations in the 2016 presi- dential campaign that China is engaged in unfair trade practices. Donald Trump, the presumptive Republican nominee, has cited the trade gap with China in threat- ening to slap new tariff s on the country if he becomes president. U.S. companies have grown increasingly vocal in criticizing Beijing for alleg- edly dumping subsidized steel and other products on world markets and for refusing to open major parts of its economy to foreign investment – a roadblock that almost certainly hinders two-way trade. Many American exporters are suff ering because China's growth is much less depen- dent on heavy industry – the expanding electricity output and the steel production Slowdown for American businesses could fuel further accusations of unfair trade practices

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