China’s exports to the US fell 27 percent year-on-year in September, while its global exports hit a six-month high. China’s global exports rose 8.3 percent year-on-year to US$328.5 billion, exceeding economists’ expectations, according to data released by Customs on Monday. This is much better than the 4.4 percent growth in August. Imports increased by 7.4 percent last month, compared to 1.3 percent increase in August.
Decline in exports for six consecutive months
However, the weak domestic economy and slowdown in the real estate sector are weighing on demand and consumption. China’s exports to the US have been falling for six consecutive months, falling 33 percent in August. Their future remains uncertain due to the breakdown of the tariff agreement between China and the US and the imposition of new tariffs and other countermeasures by both countries. Exports to Southeast Asia recorded a year-on-year increase of 15.6 percent in September. Exports to Latin America and Africa increased by 15 percent and 56 percent, respectively.
Uncertainty and difficulties are increasing in business
Wang Jun, vice minister of China’s customs agency, said on Monday, “At present, the external environment is still severe and complex. Uncertainty and difficulties in trade are increasing. We still need to make more efforts to stabilize trade in the fourth quarter.” Gary Ng, senior economist at Natixis, said China’s exports “remain resilient despite heavy tariffs, given low costs and limited global substitution options.”
America will impose 100 percent additional duty on China from November 1
Tension between the two countries has further increased after US President Donald Trump announced the imposition of 100 percent additional duty on China from November 1. America’s move comes after China announced the imposition of new port charges on American ships.
