China said on Monday that it overall trade surplus was $41.65 billion last month, a number that will only add fuel to the fire as the US and China are now as it seems, at an impasse with regards to trade negotiations. In a recent poll by Reuters had expected the overall trade surplus that China has with the US to total $20.5 billion in May, but the report released by China was double that amount. China`s General Administration of Customs said on Monday that exports in May inched up 1.1% year-on-year , while imports fell 8.5% during the same period, according to an article on CNBC.
In April, China reported a trade surplus of $13.8 billion, well below the projected $35 billion as an unexpected rise of 4% in imports, and a surprise fall in exports to the tune of 2.7% for the month. However, the trade surplus with the US widened in May and this makes the trade deal more attractive to both countries but the politics of the deal are now strained and there is likely an impasse reached. Some experts are now saying that the G20 in Japan will provide a platform for a discussion between President Xi of China and President Trump of the US.
China reported its Purchasing Managers Index for May, which was 50.2, unchanged from April. However, the May report of 52.7 services index in May was the lowest level since February.
Some analysts are banks, and the International Monetary Fund are reporting that China will experience a larger economic hit form the trade war. Both sides have a lot to gain from the deal, but will Trump and Xi deliver a path for a solution?