China’s imports increase at their fastest pace this year in September, while exports extended strong gains as more trading partners lifted Covid-19 coronavirus restrictions in a further boost to the world’s second-biggest economy.
Exports in September rose 9.9% from a year earlier, customs data showed on Tuesday, broadly in line with analysts’ expectations and up from a solid 9.5% increase in August.
The strong trade performance suggests Chinese exporters are making a brisk recovery from the pandemic’s hit to overseas orders.
As the global economy restarts, Chinese firms are rushing to grab market share as their rivals grapple with reduced manufacturing capacity.
“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,” Capital Economics Senior China Economist Julian Evans-Pritchard said.
“A jump in imports suggests that domestic investment spending remains strong.”
China’s factory activity has also increased as international trading gradually resumes.
But some analysts warn exports could peak soon as the demand for Chinese-made protective gear recedes and the base effect of this year’s massive declines wears off.
Imports increased by 13.2% in September, returning to growth from a fall of 2.1% in August and much stronger than expectations for a 0.3% increase. The import strength was broad-based for almost all of China’s main trading partners.
Taiwan’s imports also increase by 35.8% in September from a year ago, while purchases from the United States rose 24.7% on-year. Imports from Australia, however, fell 9.5%.
Imports increase from home
Wang Jun, the chief economist at Zhongyuan Bank, said the data showed government support for the economy has kicked in as the epidemic comes under control.
“This has boosted domestic demand, especially investment-led demand, which buoyed imports,” Wang said, adding that the yuan’s recent appreciation was positive for imports and people’s spending power.
Source: The Star