Economists polled by Reuters had expected dollar-denominated exports to fall 3.0 percent and imports to decline 16.0 percent, an improvement over September’s drop of 3.7 percent and 20.4 percent, respectively.
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China’s imports fell by almost a tenth in October from a year ago, official data showed on Sunday, underlining weakening domestic demand in the world’s second-largest economy. They were separated into 11.46 trillion yuan for exports, down 2 percent; and 8.47 trillion yuan for imports, down 15.2 percent. The trade surplus surged 40.2% to 393 billion yuan ($65.5 billion), the General Administration of Customs said.
The slowdown in China’s economic expansion has sent jitters across global stock markets and was cited in September by US Federal Reserve chair Janet Yellen as a reason for delaying the long-expected rise interest rates.
The country’s economic growth dipped to 6.9 percent in the third quarter, dropping below the 7 percent mark for the first time since the global financial crisis.
Falling demand from the world’s top importer of everything from industrial metals and energy to corn has in turn driven commodity prices down, which has made China’s exports even cheaper. Overall, China’s foreign trade dropped 9 percent, marking the eighth consecutive monthly decline.
As Beijing looks to transition to a consumer-driven economy, lower property rates, overcapacity in the manufacturing sector and battered consumer confidence have presented challenges within China and overseas.
The rebound after August’s plunge indicates that capital outflow pressures are easing amid a rebound in China’s stocks and currency.
Chinese President Xi Jinping this month said annual expansion should be no less than 6.5 percent in 2016-2020 if the country is to double GDP and incomes compared to 2010 levels by the end of the decade.
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The ever-growing trade surplus is likely to drive the value of the yuan up, Capital Economics wrote before the data’s announcement, a change that could increase imports as consumers enjoy more buying power.
