Published: Sun, August 12, 2018
Business | By Eloise Houston

Global LNG: Prices stable amid high demand, US-China trade spat

Global LNG: Prices stable amid high demand, US-China trade spat

China's quota system allows 34 imported movies a year to be shown in theatres, while overseas producers get a 25 percent share of box office takings, less than in other worldwide markets.

China, however, would run out of US imports to levy, as it bought only $130 billion worth of American goods past year. China's imports of formulations from the U.S. recorded a CAGR of 13.8% during 2012 -2016.

On Wednesday, official data from China showed USA imports of LNG fell to their lowest level in a year for the month of July, Reuters records showed.

China's box office revenue rose 13.45 percent previous year to 55.91 billion yuan ($8.6 billion), accelerating after a sharp slowdown in 2016. Imports surged 27.3 percent to $187.5 billion, up from the previous month's 14.1 percent. "In order to defend China's rightful interests and the multilateral trade system, China has to retaliate as necessary", it said. There was no immediate response from Beijing.

Just last month, tariffs on $34 billion worth of Chinese goods came into effect.

For its part, China has threatened to ratchet up the tit-for-tat trade war by slapping tariffs on another $60bn of American imports. Its effects were in some cases equivalent to the 1930s Great Depression in the West, and could have been even worse had the Chinese currency been devalued. It posted a 2.6 percent year-on-year increase in foreign trade with India, hitting 6.1 billion yuan. Economic experts say that this is a clear signal that Beijing will not bow under the pressure from Washington, meaning the conflict between the two global powers is far from dwindling any time soon.

The unusually strong July import figures reflected higher prices, according to Evans-Pritchard.

China's refined products exports last month were 4.57 million tonnes, almost flat from a year earlier. "Import growth is likely to slow as domestic headwinds continue to weigh on economic activity".

The initial threat was a 10 percent levy but Trump has since directed US Trade Representative Robert Lighthizer to investigate a 25 percent impost. The trade gap with the 28-nation European Union contracted by 8 percent to $11.2 billion. "The risk is that the U.S. administration's gamble to strong-arm China into giving in to all USA demands without some compromise only leads to successive rounds of higher and higher tariffs". "There is no doubt that these tariffs will impair the already diminishing scrap exports from the United States to China". But he has started the process for putting tariffs on almost all Chinese imports, perhaps because he thinks China will blink somewhere along the way, and grant the concessions he wants, including a narrower overall USA trade deficit with China. They criticize Trump's tactics but share US complaints about Chinese industrial policy and market barriers.

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