- China’s exports experienced a 6.4% drop year-on-year in October in US dollar terms, as declared by China’s customs agency on Tuesday.
- Based on statistics, China’s imports unexpectedly surged by 3% during that time frame.
- Nevertheless, a CNBC calculation of customs data displayed that China’s imports from the US in October were 3.7% lower than the previous year.
A cargo ship carrying containers is seen near Yantian port in Shenzhen, China’s Guangdong province, May 17, 2020, following the outbreak of the novel coronavirus disease (COVID-19).Thank you for reading this post, don't forget to subscribe!
Martin Pollard | reuters
BEIJING – A greater-than-expected drop in exports was reported by China in October, while imports surprisingly increased this month compared to the previous year.
China’s customs agency stated that exports fell 6.4% in US dollar terms in October compared to the previous year. That’s worse than the 3.3% decline predicted by a Reuters poll.
Imports rose 3% in US dollar terms in October compared to the previous year. This contrasts with a Reuters forecast of a 4.8% decline from the previous year.
Nevertheless, a CNBC calculation of customs data displayed that China’s imports from the US in October were 3.7% lower than the previous year.
The analysis indicated that China’s imports from the EU increased by more than 5%, while imports from the Association of Southeast Asian Nations rose by 10.2%.
As a whole, China’s exports have declined on a year-on-year basis every month since May this year. The most recent positive result for imports on a year-on-year basis was in September last year.
Based on CNBC calculations of official data, China’s exports to Southeast Asia and the European Union dropped by double digits in October. The analysis revealed that exports to the US declined by over 8%.
In terms of products, China’s crude oil imports increased both in volume and value, while rare earth imports decreased.
Shoe and toy exports declined, whereas smartphone and home appliance exports rose. China’s auto exports continued to grow by double digits in October, but at a significantly slower pace – 50% year-on-year compared to more than 60% in previous months.
A decline in global demand for Chinese goods and a decrease in domestic demand have dragged down China’s overall trade.
The second-largest economy in the world reported a gross domestic product growth of 4.9% in the third quarter, surpassing expectations and putting China on track to achieve its official target of almost 5% growth this year.
In the past few weeks, top policymakers have announced more support for the economy, mainly for struggling local governments. Beijing has also taken measures to stabilize the massive real estate sector, which is projected to hold a smaller portion of the economy in the long term.