China reports big rise in imports and exports as its economy bounces back

Imports and Exports | | MIC Customs Solutions |

China has reported a year-on-year increase in exports of almost ten per cent and a growth in imports of more than 13 per cent for September.

 


China has enjoyed a quick return to growth after the hit to its economy caused by the coronavirus earlier this year, with rises in both imports and exports contributing to its success.

Customs data revealed exports were up by 9.9 per cent year-on-year in September, up from a 9.5 per cent increase the previous month.

Meanwhile, imports for the month of September grew 13.2 per cent year on-year, far exceeding analysts' expectations for a rise of just 0.3 per cent.

China's biggest trading partners for imports included Taiwan and the US, which saw increases of 35.8 per cent and 24.7 per cent respectively. This helped drive the country's trade surplus for September down to $37 billion, compared with $58.93 billion in August and lower than an expected $58 billion. 

Customs data revealed key imports for China in September included soybeans, grains, semiconductors, copper and steel products, with all these categories seeing increases. Analysts expect imports to continue on an upward trend, driven by strengthening domestic demand.

Zhang Jun, chief economist at Morgan Stanley Huaxin Securities, added that China's import strength had been boosted by the phase one implementation of the US-China trade deal, as well as the resumption of logistics services in the United States and Europe.

When it comes to exports, China has been able to benefit from reduced manufacturing capacity in other countries as a result of the pandemic, which has allowed Chinese firms to increase their market share as the global economy reopens.

However, some analysts have suggested exports could be nearing their peak as demand for Chinese-made personal protective equipment wanes.

Senior China economist at Capital Economics Julian Evans-Pritchard commented: "The big picture is that outbound shipments remain strong, with easing demand for Covid-19 related goods such as face masks being mostly offset by a recovery in broader demand for Chinese-made consumer goods."