Hong Kong, Oct 13: China’s exports to the United States fell 27 per cent in September from the year before, even though growth in its global exports hit a six-month high.
Customs figures released Monday showed that China’s worldwide exports were 8.3 per cent higher than a year earlier, at USD 328.5 billion, surpassing economists’ estimates. That was markedly better than the 4.4 per cent year-on-year increase in August.
Imports grew 7.4 per cent last month, significantly better than a 1.3 per cent increase by year in August, although a weaker domestic economy and a real estate sector downturn continue to weigh on demand and consumption.
China’s exports to the United States have fallen for six straight months. In August they dropped 33 per cent.
The outlook is cloudy as a truce between Beijing and Washington unravels and both sides hit out with new tariffs and other retaliatory measures.
As exports to the United States have come under pressure from US President Donald Trump’s policies aimed at trying to get manufacturers to shift factories to America, China has expanded markets for its products in other regions.
Shipments to Southeast Asia grew 15.6 per cent year-on-year in September. Exports to Latin America and Africa were up 15 per cent and 56 per cent, respectively.
“Currently, the external environment is still severe and complicated. Trade is facing increasing uncertainty and difficulties,” Wang Jun, vice minister of China’s customs agency, said at a press conference Monday. “We still need to put in more efforts to stabilize trade in the fourth quarter.”
China’s exports “continue to show resilience given the low costs and limited choices for replacement globally despite the higher tariffs”, said Gary Ng, a senior economist at Natixis.
“What is more worrisome is not only tariffs but export controls,” Ng added. “If we begin to see an escalation in export controls halting supply chains, this may have a more prolonged impact.”
Tensions with the US reignited Friday after Trump threatened an additional 100 per cent tariff on Chinese goods and export controls on “critical” software.
That came after China announced it would hit American ships with new port fees in response to a US plan to impose port fees on Chinese vessels docking in the country. Beijing also extended export controls on lithium-ion batteries and on exports of rare earths and related technologies.
The friction could jeopardize plans for a meeting between Trump and Chinese President Xi Jinping in late October. It also suggests a lack of progress in efforts to forge a broad trade agreement between the world’s two biggest economies. (AP)
