BEIJING, — China’s September exports rose slightly faster than the demand for iron ore imports. This was due to a cooling property construction boom and increased energy consumption.
According to customs data, exports increased 28.1% to $305.7 million. This was slightly higher than the August 26% increase and more than economists expected. The imports increased 17.6% to $240 Billion, which was less than the 33% increase in August.
Comparing this year’s trade figures with 2020 has distorted them. In 2020, global demand plummeted in the first half of the year after governments closed factories and shops to combat the pandemic. After the March 2020 declaration of the virus under control by the ruling Communist Party, Chinese exporters were allowed to reopen while foreign competitors were still being hampered due to anti-virus restrictions.
Li Kuiwen, a spokesperson for the customs agency, stated that China’s foreign trade performance is among the best in the world. China also has an increase in its international market shares.
Li stated that “Taking into consideration the impact of 2020’s high base of foreign trading, the growth rate for imports and exports might fall in the fourth quarter, but the overall upward trend in China’s foreign exchange will not change and rapid growth throughout this year is still anticipated.”
Economists predict that the rising global demand for Chinese products will slow down as anti-disease measures are eased and entertainment, travel, and other service industries reopen.
Julian Evans-Pritchard, Capital Economics, stated in a commentary that “the bigger problem for exports has been that foreign demand was buoyed in recent quarters by large stimulus in advanced economies and shifts of consumption patterns due to pandemic,” Capital Economics’ Julian Evans-Pritchard said.
He stated that imports will also be likely to fall as property construction slows down and commodity prices decline after surging in initial rush of production as economies loosen pandemic-related restrictions.
China’s global trade surplus grew to $68 billion in September, from $52 billion in August. This was the highest level recorded since 2015.
According to the report, the politically sensitive trade surplus with America grew to $42 billion in September, from $38 billion in August.
The U.S. saw a 30% increase in exports to the country, reaching $57.4billion. However, imports from the United States grew nearly 17% to $15.4billion. Economists say that American retailers are filling empty shelves to maintain strong demand.
His successor Joe Biden has not yet indicated whether it will comply with Chinese demands to reduce some punitive duties, more than three years after Trump’s tariff war against Beijing.
Recent weeks have seen some progress in the rift between the two largest economies. However, Katherine Tai, Biden’s top trade representative, stated last week that she was ready to have open talks with Beijing over complaints about policies that Chinese businesses claim give them an unfair advantage.
In September, China’s largest export market was in Southeast Asia. This is due to growing trade ties between countries as they lower tariffs and remove some barriers as part regional trade agreements.
Wednesday’s data showed strong growth in vehicle, mobile phone, and auto parts exports in January-September.
Due to a shortage of computer chips, which are used in many products made in China, imports of metals and semi-finished goods were affected.
The Communist Party, which is currently ruling the country, has taken steps to reduce rising debt and slow down the construction boom that has fueled a lot of economic activity over recent years. This is reducing demand for construction materials.
As they try to reduce carbon emissions and clear the skies, authorities are also imposing restrictions on coal use. However, rising oil and coal prices have a less noticeable impact on dollar terms.
