Saturday, 21 October, 2017

China's Exports Grow Less Than Forecast; Imports Growth Tops Expectations

The improvement in Chinese trade data comes ahead of the Communist Party's twice-a-decade congressMore The improvement in Chinese trade data comes ahead of the Communist Party's twice-a-decade congressMore
Nellie Chapman | 13 October, 2017, 14:09

Looking ahead, Julian Evans-Pritchard, an economist at Capital Economics, said he expects any further weakening of exports to remain mild given the relatively upbeat outlook for growth in China's main trading partners.

In line with UN Security Council Resolution 2375, China fully banned the imports of North Korean textile products from September 23rd.

Higher commodity prices greatly magnified the strength of the bounce, but volumes surged, too, pointing to still-solid underlying demand. Copper imports were the highest since March.

China's foreign trade will likely grow at a double-digit pace this year if current conditions continue, the General Administration of Customs said.

China's total trade with North Korea between January and September rose 3.7% to US$4.03 billion, with the growth rate declining from 7.5% over the first eight months of the year.

Business activity stepped up also due partly to the late timing of the country's Mid-Autumn Festival holiday, which left more working days in September than in the same month of 2016.

The politically volatile surplus with the United States was $28.1 billion.

Customs figures showed exports grew 8.1 percent and imports expanded 18.7 percent in September. USA officials have resumed criticizing Chinese policy after President Donald Trump said in April he would temporarily shelve disputes while Washington and Beijing cooperated on North Korea.

With the European Union, China's exports rose 10.4 percent and imports 30.9 percent.

China's economy has surprised analysts with its resilience so far in 2017, expanding by 6.9% in the first half, though most market watchers have stuck to predictions that it will slowly begin to lose growth momentum later in the year.