BEIJING (Reuters) – China’s imports rose at their fastest pace this September, while exports rose sharply as more trading partners lifted coronavirus restrictions to further boost the world’s second-largest economy.
Exports rose 9.9% in September from a year earlier, customs data on Tuesday showed, largely in line with analysts̵
Strong trade performance suggests that Chinese exporters are recovering rapidly from the pandemic impact on foreign orders. As the global economy reboots, Chinese companies are rushing to grab market share as their competitors struggle with reduced production capacity.
“The big picture is that outbound supplies remain strong, with the easing of demand for COVID-19-related goods, such as face masks, being offset mainly by the resumption of wider demand for consumer goods made in China,” Julian said. Evans-Pritchard, a senior economist at Capital Economics in China, said.
“The jump in imports suggests that domestic investment costs remain strong.”
Chinese manufacturing has also intensified as international trade has gradually resumed.
But some analysts warn that exports could peak soon after demand for Chinese-made protective gears has receded and the underlying effect of this year’s mass decline has waned.
Imports rose 13.2% in September, returning to growth of 2.1% in August and much stronger than expected to increase by 0.3%.
RESTORATION AT HOME
Wang Jun, chief economist at Zhongyuan Bank, said the data showed government support for the economy had begun as the epidemic came under control.
“This stimulates domestic demand, especially investment-driven demand, which stimulates imports,” Wang said, adding that the recent appreciation of the yuan is positive for imports and people’s spending capacity.
The Chinese yuan rose to a 17-month high against the dollar on Friday.
The increase in imports pushed the trade surplus for September to 37 billion dollars, compared to 58.93 billion dollars in August and lower than expected 58.00 billion dollars.
In September, China bought more soybeans, cereals, semiconductors, copper and steel products, according to customs data. Analysts expect imports to continue to improve, supported by stronger domestic demand.
Zhang Joon, chief economist at Morgan Stanley Huaxin Securities, said higher purchases of US agricultural and energy products while China is in Phase 1 between the US and China, and the resumption of logistics services in the US and Europe are contributing to the strength of imports. China.
Top US and Chinese sales officials reaffirmed their commitment to a Phase 1 trade deal during a phone call in August.
China’s trade surplus with the United States shrank to $ 30.75 billion in September from $ 34.24 billion in August.
Additional reporting by Colin Kian; Edited by Sam Holmes and Richard Pullin