China’s exports increase for 4 consecutive months

China's exports increase for 4 consecutive months

The September 2020 trade statistics (in U.S. dollars) released by the General Administration of Customs of China on October 13 show that exports increased by 9.9% over the same month of the previous year, reaching 239.7 billion U.S. dollars. It has increased for 4 consecutive months, and the growth rate is also higher than that in August (9.5%). In addition to COVID-19-related products such as masks, labor-intensive products such as clothing and toys also performed strongly.

Imports increased by 13.2% year-on-year to US$202.7 billion, which is higher than the same month of the previous year in 2 months. The trade balance of exports minus imports is 37 billion U.S. dollars. The substantial increase in imports has reduced the trade surplus by 7% from the same month of the previous year.

From the perspective of exports in September, exports to major countries and regions such as the United States, Europe, Southeast Asia, etc. were higher than the same month in the previous year. Exports to the United States, which accounted for 20% of the total, increased by 21% to 43.9 billion U.S. dollars, increasing for 4 consecutive months. Exports to the European Union (EU) increased by 12% after excluding the impact of Brexit, and exports to ASEAN (ASEAN) increased by 14%. On the other hand, exports to Japan have been lower than the same month of the previous year for four consecutive months.

The categories related to the new crown epidemic have pushed up the overall level. The export of textiles, including masks, increased by 35% over the same month of the previous year, and the export of personal computers, whose demand continued to be strong, increased by 45%. In addition, labor-intensive clothing and toys increased by 3% and 7% respectively.

From the perspective of imports, integrated circuits, the most important category of imports, have surged by about 30%. The United States has completely banned the supply of semiconductors using American-made equipment and design software to Huawei’s technology since September 15. Huawei is believed to have increased imports urgently before then. Crude oil imports fell by 14%. With the normalization of domestic economic activities, the import volume increased by 18%, but due to the price drop, it was lower than the same month of the previous year in terms of value.

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