CHINA'S CONSUMER PRICE REMAINS FLAT

China's consumer price index (CPI) rose 2.8 percent in August, unchanged from the previous month’s rate as a 23.1 percent rise in pork prices from July continued to fuel inflation, according to the National Bureau of Statistics (NBS).  This was slightly higher than the 2.7 percent analysts’ forecast in a Bloomberg survey.
 
China's exports also unexpectedly fell in August as shipments to the US slowed sharply as US President Trump escalated the trade war.  Chinese exports in August fell 1% from a year earlier, the biggest fall since June, customs data showed on Sunday.  Also, exports to the US fell 16% year-on-year. Meanwhile, imports from the US slumped 22.4%. 
 
Trump said in a tweet last week, "We are doing very well in our negotiations with China. While I am sure they would love to be dealing with a new administration so they could continue their practice of “ripoff USA”($600 B/year),16 months PLUS is a long time to be hemorrhaging jobs and companies on a long-shot...."
 
Weeks ago, Trump said he would slap new 10% tariff on another $300bn of Chinese goods, escalating the trade war between the two countries. Following Trump's move,  China on Friday announced that it will raise import tariffs on some US goods. "New tariff rates will apply to about $75 billion worth of US goods," China stated. "New tariff rates imposed on some US goods will be ranging from 5% to 10% and will take effect on September 1 and December 15."  Last year, Trump imposed tariffs on about $250 billion in Chinese-made goods of mostly industrial materials and components.