U.S. President Donald Trump on Friday sounded an optimistic note about trade negotiations with China as his top economic advisers downplayed friction from the arrest of Meng Wanzhou.
“China talks are going very well,” Trump said on Twitter, without providing any details. In a note, analysts at Haitong Securities in Shanghai said “Growth in shipments of Chinese goods on U.S. 200 billion tariff list has started to pull back, indicating that frontloading effects may be starting to recede.”
“Now with U.S. and China agreeing not to escalate trade tensions any longer, China will start purchasing U.S. agricultural goods, which may narrow China-U.S. trade surplus in the future,” they said. China’s November trade surplus with the United States was a record $35.55 billion. The October surplus was $31.78 billion. But China’s imports from the U.S. in November fell 25 percent from a year earlier, while the annual decline in October was only 1.8 percent.
For trade with all countries, China’s surplus was $44.74 billion for November, compared with forecasts of $34 billion and October’s surplus of $34.02 billion.
On Thursday, the U.S. reported that its global trade deficit in October jumped to a 10-year high, and that the deficit with China surged 7.1 percent to a record $43.1 billion.