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US Anxiety Rises as China's Economy Booms, Trade Surplus Hits New High

Recently, news about China's economic growth exceeding expectations has sparked heated discussions.

On July 12th, the General Administration of Customs of China announced the latest import and export data. In June, the total value of China's import and export goods reached 516.66 billion US dollars, a year-on-year increase of 3.9%.

Among them, exports were 307.85 billion US dollars, a year-on-year increase of 8.6%, higher than the 8% predicted by economic analysts. Export growth was strong, with the increase reaching a two-year high.

Imports were 208.81 billion US dollars, a year-on-year decrease of 2.3%, the lowest level in four months.

In the first half of the year, the total value of China's imports and exports reached 2.98 trillion US dollars, a year-on-year increase of 2.9%.

Among them, exports were 1.71 trillion US dollars, a year-on-year increase of 3.6%; imports were 1.27 trillion US dollars, a year-on-year increase of 2%.

In June, China's trade surplus was 99.05 billion US dollars, the highest level since 1990; the trade surplus in the first half of the year was 434.99 billion US dollars.

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China's top 10 trading partners are: the United States, South Korea, Japan, Hong Kong, Taiwan, Vietnam, Russia, Australia, Malaysia, and Germany.

The top three countries or regions with trade surplus are: the United States, Hong Kong, and India, with surpluses of 159.9 billion US dollars, 127.94 billion US dollars, and 47.03 billion US dollars, respectively.

The top three countries or regions with trade deficits are: Taiwan, Australia, and Brazil, with deficits of 60.65 billion US dollars, 41.22 billion US dollars, and 23.73 billion US dollars, respectively.In recent years, trade between China and the Southeast Asian region has become increasingly frequent. In the first half of the year, the total trade volume with ASEAN reached a staggering $472.45 billion, far surpassing the EU's $382.39 billion.

The United States remains China's largest trading partner, with a total trade volume of $322.63 billion in the first half of the year, marking a 0.2% decrease year-on-year.

Among this, exports amounted to $241.27 billion, showing a 1.5% increase year-on-year; while imports were $81.37 billion, a 4.9% decrease year-on-year.

Looking at the import and export data, the Chinese economy has been thriving in the first half of the year, exceeding the market's unanimous expectations.

However, on the other side of the ocean, the United States presents a different picture.

On July 3rd, according to data released by the U.S. Department of Commerce, in May, the U.S. import and export trade volume further declined, with the trade deficit continuing to widen.

In May, the U.S. trade volume for goods and services exports was $261.66 billion, a 0.7% decrease month-on-month.

The import trade volume was $336.73 billion, a 0.3% decrease month-on-month.

The trade deficit was $75.07 billion, an 0.8% increase month-on-month, reaching the highest level in 19 months.

The persistent expansion of the U.S. trade deficit exacerbates the precarious government finances.In 2023, the United States had a fiscal deficit of $1.7 trillion, and over the next decade, the cumulative fiscal deficit is projected to reach a staggering $22.1 trillion, averaging $2.2 trillion per year.

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In recent years, the United States has been in a state of hysteria, employing every means possible to maintain its hegemonic status, including trade wars, technology wars, and financial wars.

The Plaza Accord led to Japan's self-weakening, resulting in a stagnant economy. The United States, on the other hand, became overly confident, believing that its hegemony was unshakable. The U.S. has also become a specialist in targeting the second-largest economies.

However, the United States has overestimated itself and underestimated the Eastern power.

The U.S. was able to replace the United Kingdom due to its manufacturing strength, which far exceeded that of the UK.

Now, with the hollowing out of its manufacturing industry, the financial and service sectors have become the pillars of the nation.

After China's total manufacturing output surpassed that of the United States in 2010, its manufacturing sector has been booming, and currently, China's total manufacturing output has exceeded the combined total of the next nine countries.

Despite the United States' desperate and reckless actions, China's economy has not only failed to stagnate but has grown stronger.

In contrast, the U.S. economy has been declining year by year, now propped up solely by the strength of the dollar. Should the dollar recede, the United States would decline at a visibly rapid pace.

In a protracted war between the world's largest manufacturing nation and a country with a hollowed-out manufacturing sector that relies on borrowing to survive, who do you think would have the upper hand? Wouldn't you say the United States is anxious?

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