China exports remain strong in October, import growth slows.
07 November, 2020
China's exports posted strong growth again last month, extending an upward trend on the trunk of a consumption rebound among its major trading partners, official data showed Saturday (Nov 7).
Inbound shipments, however, cooled after a surge in September - with analysts expecting that a drop in import prices weighed on headline numbers.
Although the coronavirus pandemic has battered countries worldwide, foreign trade in the world's second-largest economy fared better than expected, buoyed by healthcare shipments.
Exports rose 11.4 per cent on-year in October, customs data showed, better than the 8.9 per cent growth predicted by a Bloomberg poll of economists.
Imports meanwhile grew 4.7 per cent, short of the 8.8 per cent on-year rise expected.
The customs administration said Saturday that China's exports of mechanical and electrical products rose in the first 10 months, as did outbound shipments of textiles including face masks, which rose around 35 % from this past year.
Capital Economics cautioned in a written report this week, however, that recent data pointed to a drop in new export orders in October, signalling that "foreign demand has began to soften following fresh lockdowns abroad".
The resurgence of infections in key markets - like the US and Europe - could strike external demand for China, which includes made a renewed push this season for local consumption to underpin growth.
"Most measures advise that domestic demand continued to strengthen and the infrastructure investment at the heart of the ongoing stimulus is particularly import-intensive," said Capital Economics.
Meanwhile, China's trade surplus with the united states - the core gripe in Washington in the bruising trade war - rose around 19 % from last year to US$31.4 billion in October.
This widened slightly from the US$30.8 billion observed in the month before, marking one of the larger surpluses this season according to Chinese figures.
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