China's exports rise the most in nearly 1-1/2 yrs

China's exports rise the most in nearly 1-1/2 years as economies reopen; imports slip

Gabriel Crossley

4 Min Read

BEIJING (Reuters) - China’s exports rose for the third consecutive month in August, eclipsing an extended fall in imports, as more of its trading partners relaxed coronavirus lockdowns in a further boost to the recovery in the world’s second-biggest economy.

Exports in August rose a solid 9.5% from a year earlier, customs data showed on Monday, marking the strongest gain since March 2019. The figure also beat analysts’ expectations for 7.1% growth and compared with a 7.2% increase in July.

Imports however slumped 2.1%, compared with market expectations for a 0.1% increase and extending a 1.4% fall in July.

The strong exports suggest a faster and more balanced recovery for the Chinese economy, which is rebounding from a record first-quarter slump thanks largely to domestic stimulus measures

“China’s exports continue to defy expectations and to grow significantly faster than global trade, thus gaining global market share,” said Louis Kuijs of Oxford Economics.

A private survey on manufacturing activity last week showed Chinese factories reported the first increase in new export orders this year in August as overseas demand slowly revives. The pick-up in business also led to a further expansion in production, marking the sharpest gain in almost a decade.

China’s export performance, boosted by record shipments of medical supplies and robust demand for electronic products, has not been as severely affected by the global slowdown as some analysts had feared.

All the same, some analysts cautioned that the stronger exports reflected in part the base effects of the year-ago weakness.

Imports unexpectedly slipped further into contraction, suggesting softer domestic demand.

But imports were largely stable in terms of volume, said Julian Evans-Pritchard of Capital Economics, in a note.

“With credit growth still accelerating and infrastructure-led stimulus still ramping up, import volumes should remain strong in the coming months,” he said.

Copper imports in August eased from the previous month’s all-time high, as an arbitrage window to bring in overseas metal shut and demand from key consumption sectors slowed. Coal imports slipped 20.8% from the month before. Iron ore imports fell 10.9% from July but rose from a year earlier on resilient demand for steel.

China posted a trade surplus of $58.93 billion last month, compared with the poll’s forecast for a $50.50 billion surplus and $62.33 billion surplus in July.

OUTLOOK STILL UNCERTAIN

The outlook is still far from rosy as external demand could suffer if virus control measures have to be re-imposed by trade partners later this year on a resurgence of the epidemic.

China also is looking to reduce its reliance on overseas markets for its development as U.S. hostility and the pandemic increase external risks that could hamper longer-term progress.

Already heightened U.S.-China tensions are expected to escalate ahead of the U.S. presidential election. China remains well behind on its pledge to boost purchases of U.S. goods under an agreement that was launched in February.

China’s trade surplus with the United States widened to $34.24 billion in August from $32.46 billion in July.

FILE PHOTO: Cranes and containers are seen at the Yantian port in Shenzhen, following the novel coronavirus disease (COVID-19) outbreak, Guangdong province, China May 17, 2020. REUTERS/Martin Pollard

Top U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal in a phone call last month. “Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement,” the U.S. Trade Representative’s office said.

Falling imports of integrated circuits in August are likely the result of the new restrictions on U.S. companies doing businesses with Chinese technology companies, said Iris Pang, chief economist for Greater China at ING, in a note.

Bilateral tensions could also affect exports of technological products and services in the coming months, she said.

Pent up demand

1 Like
Naughty Gorilla -

Pent up demand

Nothing to do about pent up demand, it's the Amazon lock-down economy.

1 Like

They deserve it. They have been through so much with corona 

Thanks Obama

EFM -
Naughty Gorilla -

Pent up demand

Nothing to do about pent up demand, it's the Amazon lock-down economy.

What do you mean by Amazon lock down economy

sicko -
EFM -
Naughty Gorilla -

Pent up demand

Nothing to do about pent up demand, it's the Amazon lock-down economy.

What do you mean by Amazon lock down economy

Did you ever stop buying shit made in china during the lockdown?  I didnt.  Just pull up amazon and clock Add To Cart.  At your doorstep in a couple days.

EFM -
sicko -
EFM -
Naughty Gorilla -

Pent up demand

Nothing to do about pent up demand, it's the Amazon lock-down economy.

What do you mean by Amazon lock down economy

Did you ever stop buying shit made in china during the lockdown?  I didnt.  Just pull up amazon and clock Add To Cart.  At your doorstep in a couple days.

A couple days?  Do you live in the Boonies?

I’m sure the lockdown and Amazon have nothing to do with it.

J/K

EFM -
sicko -
EFM -
Naughty Gorilla -

Pent up demand

Nothing to do about pent up demand, it's the Amazon lock-down economy.

What do you mean by Amazon lock down economy

Did you ever stop buying shit made in china during the lockdown?  I didnt.  Just pull up amazon and clock Add To Cart.  At your doorstep in a couple days.

Yes, but there were also significantly more things back ordered or out of stock. For example all those things people were saying were impossible to find (bicycles, exercise equipment, etc), and even many books I was looking to buy were sold out and only available through third party sellers.

Like you said, we didn't stop buying stuff made in China during the lock down, but the article mentions the decline in China exports in the first quarter. It's not worth arguing, but those points would seem to conflict with your comment that pent up demand has nothing to do with China's current increase in exports 

sicko -
EFM -
sicko -
EFM -
Naughty Gorilla -

Pent up demand

Nothing to do about pent up demand, it's the Amazon lock-down economy.

What do you mean by Amazon lock down economy

Did you ever stop buying shit made in china during the lockdown?  I didnt.  Just pull up amazon and clock Add To Cart.  At your doorstep in a couple days.

Yes, but there were also significantly more things back ordered or out of stock. For example all those things people were saying were impossible to find (bicycles, exercise equipment, etc), and even many books I was looking to buy were sold out and only available through third party sellers.

Like you said, we didn't stop buying stuff made in China during the lock down, but the article mentions the decline in China exports in the first quarter. It's not worth arguing, but those points would seem to conflict with your comment that pent up demand has nothing to do with China's current increase in exports 

perhaps.

OPEN UP NOW

I thought The Orange Man put a tariff on Chinese goods.  If we're importing at record levels while a tariff is in place then that's good for the us, right?

phydeau -

I thought The Orange Man put a tariff on Chinese goods.  If we're importing at record levels while a tariff is in place then that's good for the us, right?

Or there really isnt another option for American Distributors so Americans will pay the Tarriff regardless. They will pass that onto the customer or cut costs in other ways like laying people off.

Chinese factories were shut down for months. They reopen and work overtime to catch up with orders

It’s all the shitty masks they send to the US