By AP with Euronews
Published on
China’s exports globally hit a six-month high in September; however, exports to the United States fell 27% in the same month, compared to the year before.
Customs figures released Monday showed that China’s worldwide exports were 8.3% higher than a year earlier, at $328.5 billion (€283bn), surpassing economists’ estimates.
That was markedly better than the 4.4% year-on-year increase in August.
Imports grew 7.4% last month, significantly better than a 1.3% 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%.
The outlook is cloudy as a truce between Beijing and Washington unravels and both sides hit out with new tariffs and other retaliatory measures.
Renewed trade tensions
Tensions with the US reignited Friday after the US President Donald Trump threatened an additional 100% 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 jeopardise 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.
China signalled on Sunday that it would not back down in the face of a 100% tariff threat from President Trump and urged the United States to resolve differences through negotiations instead of threats.
Trump responded by taking a less confrontational approach without retreating from his demands, while his vice president seemed to warn Beijing not to react aggressively.
“China’s stance is consistent,” the Commerce Ministry said in a statement posted online. “We do not want a tariff war, but we are not afraid of one.”
Hours later, Trump used his Truth Social platform to send a message to Chinese leader Xi Jinping. “Don’t worry about China, it will all be fine!” the Republican president wrote. “Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”
Chinese exports are climbing across the globe
As exports to the United States have come under pressure from 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% year-on-year in September. Exports to Latin America and Africa were up 15% and 56%, 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 stabilise 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.”