China’s foreign trade showed surprising strength in September, with both exports and imports beating forecasts despite headwinds from mounting global tensions and weakening domestic demand.
However, with a surge in imports, trade balance shrank to a surplus of $90.45 billion, less than expectations of $98.96 billion. The surplus also fell from the $102.33 billion seen in the prior month, customs data showed on Monday.
Exports in dollar terms jumped 8.3% year-on-year, well ahead of the 6.0% gain projected by analysts and sharply up from August’s 4.4% rise.
Imports rose 7.4%, also far exceeding the anticipated 1.5% and reversing the modest 1.3% growth logged in August.
The performance signaled resilience in China’s external sector even as other economic indicators point to softness at home.
Exporters are increasingly shifting focus away from the United States toward Southeast Asia, Africa, and India to offset U.S. tariff pressure. Still, weakness lingers in domestic demand as fixed-asset investment, retail sales, and manufacturing orders remain sluggish.
Policymakers may view the stronger trade print as justification to delay aggressive stimulus measures, but further upside hinges on whether global demand holds up and whether trade tensions intensify.
U.S. President Donald Trump ramped up trade tensions last week, threatening to impose an additional 100% tariffs on Chinese exports, with Beijing vowing to retaliate if measures come into effect.
Source :
https://www.investing.com/news/economic-indicators/chinas-exports-and-imports-beat-forecasts-in-sept-signaling-trade-resilience-4283055
