China Takes Drastic Steps to Improve Economy

Illustration photo of a China yuan note
A China yuan note is seen in this illustration photo May 31, 2017.
(Photo: REUTERS/Thomas White/Illustration/File Photo GLOBAL BUSINESS WEEK AHEAD)

Based on the latest statistics revealed to the public, it would appear that China's economy is standing strong despite waves of challenges both domestic and abroad. Despite this positive outlook, some in the country are concerned about some pockets of the economy that has seen a minimal boost.

Based on the latest data, Chinese exports to the United States still rose despite the ongoing trade war between the two countries. On the other hand, exports from the United States to China dropped to 8.2 percent in July. When seasonally adjusted it represents about $11.03 billion. In terms of overall export, China still outperforms its Western rival.

Despite this positive note, some are still skeptical of the data. This skepticism came in part due to the trade war initiated by the U.S. Many observers and analysts have conferred that the trade war has severe repercussions to the U.S. market and an even greater negative effect to the overall global market.

Another important factor that had helped shed light on this ongoing trade war is the status of China's reserves as of last month. Market analysts are anxious about the Yuan's small slip in the last two months. However, market experts are positive that the currency is stable and will eventually rebind within the coming months. Based on market data, the volatility of the foreign exchange rate and the strong value of the U.S. dollar have mainly caused the Yuan to drop value in August.

Despite this recent dip, many market experts are expecting the Yuan to rebound because of the upcoming seasonal demand brought upon by Christmas. Additionally, U.S. importers are also finding means in order to buy more Chinese goods in order to avoid the upcoming tariffs.

Many U.S importers would rather prefer to buy bulk goods and stockpile compared to finding alternative markets. It is because of this that Chinese exports continue to remain stable despite the devastating effect of the U.S. tariffs, especially in some markets.

Many analysts are also positive that continual growth of the Chinese economy will have the huge economic benefit not only to the country but also to its immediate neighbors, and in due time the global market. It is important to note that China's total exports continue to be huge. Recent data reveal that in the first seven months of the year, the country's expert has risen by as much as 5 percent.

© 2018 Business Times All rights reserved. Do not reproduce without permission.