China’s trade growth accelerates in September; exports up 9.9%

By: |
October 13, 2020 11:01 AM

Exports rose 9.9% over a year earlier to $239.8 billion, up from August's 9.5% growth, customs data showed Tuesday.

China became the first major economy to rebound to pre-virus growth levels in the second quarter of the year. (Photo source: Reuters)

China’s trade growth accelerated in September as the world’s second-largest economy recovered from the coronavirus pandemic. Exports rose 9.9% over a year earlier to $239.8 billion, up from August’s 9.5% growth, customs data showed Tuesday. Imports gained 13.2% to $202.8 billion, up from the previous month’s 2.1% contraction.

Exporters have benefited from China’s relatively early reopening from its shutdown to fight the virus and from global demand for masks and medical supplies. They are taking market share from foreign competitors that are hampered by anti-disease controls.

China’s global trade surplus swelled 6.6% over a year earlier to $37 billion but was down sharply from August’s $58.9 billion gap. Exports to the United States rose 20.5% over a year ago to $44 billion despite higher US tariffs in a fight with the Trump administration over Beijing’s technology ambitions and trade surplus. Imports of American goods rose 24.5% to $13.2 billion.

China became the first major economy to rebound to pre-virus growth levels in the second quarter of the year. The government reported 3.2% economic growth over a year earlier. Forecasters expect that to accelerate in the three months that ended in September.

Automakers and other large manufacturers are back to normal activity, helping to drive demand for imported iron ore, copper and other industrial materials.

Importers have benefited from a slump in prices of oil and other commodities due to weak demand. Retail sales are weaker as consumers who are uneasy about possible job losses put off major purchases. Consumer spending returned to pre-virus levels in August but was only 0.5% above a year earlier.

Economists have warned some Chinese exporters of smartphones and other high-tech goods might face trouble due to restrictions imposed by Washington on their access to US components on security grounds.

Washington has cut off supplies of components for companies including China’s most prominent tech brand, Huawei Technologies Ltd.

The Trump administration is lobbying European and other allies to avoid Chinese suppliers as they upgrade to next-generation telecom networks. That could weigh on exports of technology products Beijing is promoting to propel economic development.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Over Rs 9 lakh crore disbursed as Mudra loans since 2015: Labour minister Santosh Kumar Gangwar
2Moody’s: Covid-19 second wave dented aggregate demand but impact limited
3FM Sitharaman says cases against fugitives, economic offenders to be actively pursued: