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China's exports declined further in September

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Published : Oct 14, 2019, 2:05 PM IST

The decline in exports is majorly due to prolonged trade disputes with the US amid slowing global economic growth.

China's exports declined further in September

Beijing: China's exports declined further in September, majorly due to the Asian giant's prolonged trade dispute with the US amid slowing global economic growth, official data revealed on Monday.

China's exports last month decreased 3.2 per cent from a year earlier, following August's 1 per cent drop, EFE news reported citing the General Administration of Customs (GAC) data.

A Wall Street Journal (WSJ) poll of economists had tipped a 3 per cent decline.

Imports slid 8.5 per cent on year in September, extending August's 5.6 per cent drop, the customs data showed.

The WSJ poll had forecast a decline of 6 per cent.

China's overall trade surplus stood at $39.65 billion in September, wider than August's $34.8 billion surplus and the $34.05 billion surplus that had been expected.

According to the GAC, the total trade volume for the first three quarters of 2019 grew 2.8 per cent year-on-year, reaching 22.91 trillion yuan ($3.2 trillion).

Exports grew by 5.2 per cent in the same nine-month period compared to the previous year, while imports shrank 0.1 per cent.

Between January and September this year, China's trade surplus was 2.05 trillion yuan ($290 billion), an increase of 44.2 per cent compared to the first three quarters of 2018.

Trade tensions between China and the US have eased a little following last week's high-level trade talks, with Washington shelving new tariffs against Beijing while leaving many demands to be worked out later, in return for an assurance of increased agriculture purchases by China.

Read more: Wholesale price-based inflation stood at 0.33% in September

Beijing: China's exports declined further in September, majorly due to the Asian giant's prolonged trade dispute with the US amid slowing global economic growth, official data revealed on Monday.

China's exports last month decreased 3.2 per cent from a year earlier, following August's 1 per cent drop, EFE news reported citing the General Administration of Customs (GAC) data.

A Wall Street Journal (WSJ) poll of economists had tipped a 3 per cent decline.

Imports slid 8.5 per cent on year in September, extending August's 5.6 per cent drop, the customs data showed.

The WSJ poll had forecast a decline of 6 per cent.

China's overall trade surplus stood at $39.65 billion in September, wider than August's $34.8 billion surplus and the $34.05 billion surplus that had been expected.

According to the GAC, the total trade volume for the first three quarters of 2019 grew 2.8 per cent year-on-year, reaching 22.91 trillion yuan ($3.2 trillion).

Exports grew by 5.2 per cent in the same nine-month period compared to the previous year, while imports shrank 0.1 per cent.

Between January and September this year, China's trade surplus was 2.05 trillion yuan ($290 billion), an increase of 44.2 per cent compared to the first three quarters of 2018.

Trade tensions between China and the US have eased a little following last week's high-level trade talks, with Washington shelving new tariffs against Beijing while leaving many demands to be worked out later, in return for an assurance of increased agriculture purchases by China.

Read more: Wholesale price-based inflation stood at 0.33% in September

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Reliance to swap diesel for Venezuelan crude oil
          New Delhi, Oct 14 (PTI) Reliance Industries will pay for Venezuelan crude oil via exports of diesel in a barter arrangement as it resumed taking supplies from the US sanctions-hit Latin American nation after a gap of four months.
          Although US oil sanctions imposed on Venezuela in January 2019 have no direct secondary component, oil companies such as Reliance Industries (RIL) that have a significant US presence have curtailed their commercial ties with the Opec nation.
          Reliance had in March capped oil purchases from the Latin and halted selling diluent.
          "RIL has been supplying permitted products like diesel to Venezuela and, hence, is able to recommence crude sourcing. These are actions compliant to US-sanctions as crude sourcing against the supply of permitted products is allowed," a company spokesperson said.
          Following US sanctions, companies had shunned direct purchases in favour of secondary market sourcing through Russia's state-controlled Rosneft, which is now the primary supplier of Venezuelan oil.
          US President Donald Trump had in January slapped oil sanctions on Venezuela in a bid to put pressure on its socialist President Maduro to step down.
          The sanctions, however, do not ban importing crude oil from Venezuela, but barred supply from the US of the diluents that must be blended with the extra-heavy oil from Venezuela's Orinoco Belt so it could flow through pipelines.
          RIL, which operates twin refineries with a capacity to process 1.36 million barrels per day of crude oil at Jamnagar in Gujarat, had a contract to buy around 3 million barrels of crude oil from Venezuela a month, which was reduced to about 2 million barrels by March 2019.
          Venezuela's state-owned oil company, PDVSA, has been placed on the US Treasury Department's Specially Designated Nationals List, which generally prohibits American citizens from dealing with named firms or individuals. This has resulted in international banks and shipping companies as well as Reliance ceasing any transactions.
          These restrictions come into force on March 29 after an eight-week winding down period for contracts that were already in effect.
          In March, RIL had stated that its "US subsidiary has completely stopped all business with Venezuela's state-owned oil company, PDVSA, and its global parent has not increased crude purchases."
          "In addition, since sanctions were imposed and contrary to some news reports, Reliance has halted all supply of diluent to PDVSA and will not resume such sales until sanctions are lifted," it had stated.
          Oil from the Orinoco needs to be diluted with lighter grades to reduce its viscosity so as to allow its flow through pipelines to the coast for export or processing.
          Besides Reliance, Rosneft-backed Nayara Energy is the primary buyer of Venezuela oil in India, because their advanced refining systems can process the thick Venezuelan grade into high-value fuels such as gasoline, low-sulfur diesel and jet fuel.
          Venezuela shipped around 3,08,000 barrels per day of crude during January-August to India. PTI ANZ BAL
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