Beijing Bargaining

Chinese exports to the US fell 3.5% Y-o-Y in December, while global Chinese exports declined 4.4% Y-o-Y in December. Worse, imports fell 7.6% Y-o-Y in December, suggesting domestic Chinese demand is skidding. In another sign of a Chinese slowdown, the official purchasing managers’ index for Guangdong has suddenly disappeared. Add slowing global growth and that’s why Beijing is suddenly quite eager to reach a trade deal with the US.