According to the General Administration of Customs of China on Thursday, China's US dollar-denominated exports in July rose 3.3 percent year-on-year, beating expectations. Imports fell by 5.6 percent; the fall is also lower than expected. China's overall trade surplus in July was $45.06 billion, expanding by 63.9 percent from a year ago.
These numbers are widely believed to show that although the trade war is having a negative effect on China's foreign trade, the resilience of China's trade is far beyond people's expectations. Chinese export enterprises are making swift adjustment, and have made progress in minimizing the effects of US tariffs.
In the first seven months of 2019, China's trade in major markets, including the EU, ASEAN and Japan, has increased. China's trade growth rate in countries along the Belt and Road Initiative is higher than the overall level. The trade of private enterprises has grown rapidly, with electromechanical and labor-intensive products all maintaining growth. The Chinese economy is now more capable of shunning the impact of a US-launched trade war.
China does not want a long-term trade war. But if this is unavoidable, the Chinese economy can open a new path and explore room for maneuvering.
China's foreign trade will remain difficult in the second half of 2019 amid the potentially worsening China-US trade war and the global economic downturn. But previous experiences have shown that the Chinese economy is among those with the strongest resilience. Some in the US have been eager to knock China down. They will be increasingly disappointed in the global economic context.
China has learned new capabilities in every field where the US strong-armed it. China has not experienced economic shocks which the US had anticipated. This is the great society's unique natural endowment. China has mastered complete industrial capabilities and opened up numerous channels to connect to the outside world.
There is an obvious distinction between China and the US: China, practical and realistic, has prepared for the worst; but the US has kept making unrealistic promises and lying to the public. The US is taking a wrong path and placing itself in a dilemma.
Many of the US lies are intended to bolster US stock markets. The exuberance of the US economy is partly supported by bubbles, hot money and financial leverage. US investors will pay the price sooner or later.
The China-US trade war will be a protracted one and Chinese society is firm about it. The US trade war won't weaken China, but will promote China's all-round rejuvenation.
Economic data may be mixed, but China is getting stronger, a trend which the world clearly perceives. The Chinese economy's resilience comes from the country's huge potential and strong ability to tap this potential. There is no outside force that can disrupt the process as long as China doesn't stop by itself. Some people in Washington refuse to accept this trend, but time will teach them.