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China October exports surge, imports rise amid global recovery

Economic IndicatorsNov 07, 2020 12:45AM ET
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© Reuters. Truck transports a container next to a cargo vessel at a port in Qingdao, Shandong

BEIJING (Reuters) - China exports grew at the fastest pace in 19 months in October, while imports also rose, official data showed on Saturday, as the world's second largest economy continued to recover after being hit hard by the coronavirus crisis earlier this year.

Exports in October rose 11.4% from a year earlier, beating analysts' expectations of a 9.3% increase and quickening from a solid 9.9% increase in September.

The surge in exports pushed the trade surplus for October up to $58.44 billion, compared with the poll's forecast for a $46 billion surplus and a $37 billion surplus in September.

China's trade surplus with the United States widened to $31.37 billion in October from $30.75 billion in September.

China's exports have stayed largely resilient amid the COVID-19 global pandemic, as strong demand for medical supplies and reduced manufacturing capacity elsewhere worked in China's favour.

"Exports growth quickened further and significantly exceeded expectations, indicating a relatively strong momentum," said Liu Xuezhi, an anlyst at Bank of Communications in Shanghai.

China's exports could stay strong in the rest of 2020 as domestic firms resume production faster than global rivals and sell more COVID-19 related goods such as face masks, Liu said.

However, some analysts said exports could come under pressure in the coming months, as major European economies, including France, Germany and the United Kingdom, went back into lockdown as a second wave of coronavirus cases gathered strength.Factory activity accelerated at the fastest pace in nearly a decade in October, a private survey showed, although the official survey pointed to some slowdown in the expansion. Export orders expanded.

Imports rose 4.7% year-on-year in October, slower than September's 13.2% growth, and underperforming expectations in a Reuters poll for a 9.5% increase, but still marking a second straight month of growth.

Chinese airlines are shunning some deliveries of Airbus (PA:AIR) aircraft, citing fears of coronavirus infection for their staff in the latest tussle over efforts to keep delayed deliveries on track despite the pandemic, industry sources said.

Analysts said the solid trade performance could provide a boost to China's broader economic recovery, which has gained steam after suffering from a deep slump earlier this year.

China's economy grew 4.9% in the third-quarter from a year earlier, but growth could slow to just over 2% this year - the weakest in over three decades but still much stronger than other major economies.

"China has a better recovery from the pandemic and has a comparative advantage, so it has gained a larger market," said Zhou Hao, an economist at Commerzbank (DE:CBKG) in Singapore.

"Of course, this advantage is also temporary and may last until the end of the year."

China October exports surge, imports rise amid global recovery
 

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Comments (4)
Zack Persie
Zack Persie Nov 07, 2020 2:54AM ET
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Trump screwed up covid handling in US though he was personally told by China on danger of the virus before outbreak reach US. Trump's recklessness & selfish desires to protect his family's hotel & resort businesses led him to lie & hid covid information from American public, leaving US severely unprepared.
Alan Rice
Alan Rice Nov 07, 2020 2:54AM ET
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history. so ??
TL Chan
TL Chan Nov 07, 2020 1:57AM ET
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In China's Shun's Warfate theory, it do have one strategy to beat your competitor involving some self ruining first,.and the result will be the victim wont be dubious on you and even praise you, like more than half of the America, who let the CCP sponsored agent to run their country from 2021! St**p*dity get more st**p**its, i guess it is natural law !
TL Chan
TL Chan Nov 07, 2020 1:50AM ET
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Of course, that is why more than 250 countries in the world got the virus during CCP self inflicted own outbreak,, corresponding by WHO saying no need to wear madk until Tam changed his saying in June, and even Dr Fauci was being doubt he had bribed by CCP to do the similar things ! Poor Trump that time is difficult not to trust their words!
Boltzman Knight
Boltzman Knight Nov 07, 2020 1:50AM ET
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Borat
David David
David9 Nov 07, 2020 1:37AM ET
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China is the only country projected to grow fast in this pandemic...
 
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