China September Exports Up 9.9%, Imports Up 13.2%

Normalization of Domestic Production Including Export of COVID-19 Quarantine Supplies, Increase in Imports for Domestic Demand Activation
Q3 GDP Growth Rate Forecasted at 5-5.5%

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Last month, China's exports nearly doubled, indicating normalization after the COVID-19 pandemic.

According to the General Administration of Customs of China on the 13th, China's exports in September amounted to $239.76 billion, an increase of 9.9% compared to the same month last year. This is a slight increase from the 9.5% growth in the previous month.

Li Kuiyuan, spokesperson for the General Administration of Customs, self-assessed that "the increase in exports was driven by the rise in exports of epidemic prevention materials and the normalization of domestic production."

Imports in September also rose by 13.2% year-on-year to $202.76 billion.

The increase in imports signifies that the Chinese economy is on the path to normalization. Last month's import growth rate was minus 0.8%. The rise in imports indicates that domestic production and manufacturing activities are operating normally.

Additionally, the increase in imports also means that the domestic market, which had been stagnant after COVID-19, is regaining vitality.

Given the worsening external environment due to COVID-19 and the US-China conflict, the Chinese leadership's emphasis on the "Shuangxun (dual circulation)" economic strategy makes this rebound in imports significant.

The yuan's appreciation against the US dollar also appears to have influenced the increase in imports. The yuan, which had been trading in the 7-yuan range per dollar, moved into the 6-yuan range in September. The yuan's strength affects import prices.

The yuan's appreciation means an increase in the yuan's value and capital inflow into China. The view that the Chinese government is tolerating the yuan's strength to activate domestic demand is gaining credibility.

China's trade balance in September recorded a surplus of $37 billion.

Accordingly, attention is focused on the GDP growth rate of China, scheduled to be announced on the 19th.

In China, the dominant forecast is that the third-quarter growth rate will be between 5% and 5.5%.

This is based on improvements in key economic indicators such as production, consumption, investment, and employment. The manufacturing Purchasing Managers' Index (PMI) is representative. The September PMI announced by the National Bureau of Statistics of China was 51.5, up from 51.0 the previous month, marking seven consecutive months of economic expansion. The manufacturing PMI index, which indicates economic trends, means expansion if it exceeds the baseline of 50, and contraction if it does not.

This content was produced with the assistance of AI translation services.