China exports rise despite ongoing trade row with US

Beijing, Aug 8 (IANS) Chinese exports rose 3.3 per cent in July, compared to forecasts for a 2 per cent drop, as the ongoing trade tensions with the US continued to escalate, official figures revealed on Thursday.

The figures showed that imports however, fell 5.6 per cent last month, less than the expected 8.3 per cent decline, the BBC reported.

The figures come the US President Donald Trump last week announced his decision to impose duties on $300 billion worth of Chinese products on September 1, after long-running trade negotiations between the two countries broke down.

Tensions between the world's two largest economies further intensified this week after the US officially named China a "currency manipulator" following a sharp drop in the value of the yuan against the US dollar.

A weaker yuan makes Chinese exports more competitive, or cheaper to buy with foreign currencies.

On Thursday, the People's Bank of China set its official yuan midpoint below the key 7 level to the US dollar for the first time since 2008, reports the BBC.

But the trading point was firmer than traders had expected, and was seen as a signal that authorities wanted to stabilise the decline in the currency.

--IANS

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