China’s trade performance picked up in September with exports growing a touch faster, but imports finally perking up after several months of contraction.
In fact, the double-digit rise in imports took economists by surprise and it dropped the trade surplus by a third, which also surprised forecasts.
China’s factory activity has picked up as international trading gradually resumes.
The country’s Customs Administration said exports grew at a slightly faster rate in September in a fourth straight month of gains as overseas demand continued to pick up.
Exports rose 9.9% last month from September 2019 compared with a 9.5% increase in August.
The growth was slightly higher than a 9.6% on-year increase expected by economists.
Imports surged 13.2% from a year earlier in September, better than a 2.1% fall in August and the less than 1% growth forecast by economists. It was the first rise in imports for three months.
Chinese exports have been boosted by record shipments of medical supplies (PPE, masks, shields and clothing) and continuing strong demand for electronic products in the last several months.
In contrast, sales of refined products fell 30.5% year-on-year and those of steel products plunged 28.2% (thanks in part to the impact of Donald Trump’s 25% tariffs in the US). As well, exports of unwrought aluminium fell 2%.
Compared to the previous month, imports rose for major commodities including crude oil, iron ore, copper, oil and soybeans.
Imports of meat were 834,000 tonnes, slightly higher than last month’s 632,000 tonnes, due to the suspension of exports by some overseas plants facing coronavirus outbreaks among workers (Brazil and Australia).
The jump in imports saw China’s trade surplus fall to a still strong $US37.0 billion, compared with August’s $US58.9 billion and economists’ estimates of $US58.4 billion.
But some analysts warn exports could peak soon as demand for Chinese-made protective gear recedes and the base effect of this year’s massive declines wears off.
China’s trade surplus with the United States fell to $US30.75 billion in September from $US34.24 billion in August.
For the first nine months of the year, China’s trade surplus with the United States totalled $US218.57 billion.
