Geographies in Depth

China's imports, exports surge as global economy reopens

A container ship is seen during a government-organized media tour to Mawan Smart Port at Qianhai Shekou Free Trade Zone in Shenzhen, Guangdong province China September 27, 2020. Picture taken September 27, 2020. REUTERS/David Kirton - RC2NHJ93D9NP

The Chinese yuan recently rose to a 17-month high against the dollar. Image: REUTERS/David Kirton

Gabriel Crossley
Writer, Reuters
Stella Qiu
Economics & Aviation Reporter , Reuters
Share:
Our Impact
What's the World Economic Forum doing to accelerate action on Geographies in Depth?
The Big Picture
Explore and monitor how Pandemic Preparedness and Response is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
Stay up to date:

Pandemic Preparedness and Response

  • China's imports and exports have grown quickly in recent months, suggesting the economy is recovering from COVID-19.
  • Imports increased by 13.2% in September, returning to growth from a fall of 2.1% in August.
  • China’s trade surplus with the United States has narrowed to $30.75 billion in September from $34.24 billion in August.

China’s imports grew at their fastest pace this year in September, while exports extended strong gains as more trading partners lifted coronavirus restrictions in a further boost to the world’s second-biggest economy.

China coronavirus covid19 economic shipping trade
Exports in September rose 9.9% from a year earlier, customs data showed. Image: REUTERS/Martin Pollard

Exports in September rose 9.9% from a year earlier, customs data showed, broadly in line with analysts’ expectations and up from a solid 9.5% increase in August.

The strong trade performance suggests Chinese exporters are making a brisk recovery from the pandemic’s hit to overseas orders.

Have you read?

As the global economy restarts, Chinese firms are rushing to grab market share as their rivals grapple with reduced manufacturing capacity.

“The big picture is that outbound shipments remain strong, with easing demand for COVID-19 related goods such as face masks being mostly offset by a recovery in broader demand for Chinese-made consumer goods,” Capital Economics Senior China Economist Julian Evans-Pritchard said.

“A jump in imports suggests that domestic investment spending remains strong.”

China’s factory activity has also picked up as international trading gradually resumes.

But some analysts warn exports could peak soon as the demand for Chinese-made protective gear recedes and the base effect of this year’s massive declines wears off.

Imports surged 13.2% in September, returning to growth from a fall of 2.1% in August and much stronger than expectations for a 0.3% increase. The import strength was broad based for almost all of China’s main trading partners.

Imports from Taiwan surged 35.8% in September from a year ago, while purchases from the United States rose 24.7% on-year. Imports from Australia, however, fell 9.5%.

Recovery at home

Wang Jun, chief economist at Zhongyuan Bank, said the data showed government support for the economy has kicked in as the epidemic comes under control.

“This has boosted domestic demand, especially investment-led demand, which buoyed imports,” Wang said, adding that the yuan’s recent appreciation was positive for imports and people’s spending power.

The Chinese yuan rose to a 17-month high against the dollar.

The rise in imports pushed the trade surplus for September down to $37 billion, compared with $58.93 billion in August and lower than an expected $58.00 billion.

Across products, China bought more soybeans, grains, semiconductors, copper and steel products in September, customs data showed. Analysts expect imports to stay on an improving trend, underpinned by strengthening domestic demand.

Zhang Jun, chief economist at Morgan Stanley Huaxin Securities, said higher purchases of U.S. agricultural and energy products as China implemented the Phase 1 U.S.-China trade deal, and the resumption of logistics services in the United States and Europe contributed to China’s import strength.

Top U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal in a telephone call in August.

China’s trade surplus with the United States narrowed to $30.75 billion in September from $34.24 billion in August.

Loading...
Loading...
Loading...
Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Related topics:
Geographies in DepthTrade and InvestmentHealth and Healthcare Systems
Share:
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

What is desertification and why is it important to understand?

Andrea Willige

September 26, 2024

About us

Engage with us

  • Sign in
  • Partner with us
  • Become a member
  • Sign up for our press releases
  • Subscribe to our newsletters
  • Contact us

Quick links

Language editions

Privacy Policy & Terms of Service

Sitemap

© 2024 World Economic Forum