IGI Logo

China's export growth slowed to 2.4% in September, the weakest pace in five months, signaling declining global demand. Imports edged up by 0.3%, missing forecasts. The trade surplus narrowed to $81.71 billion from $91.02 billion in August, falling short of expectations. Analysts attribute previous strong export performance to manufacturers cutting prices to secure buyers. Additionally, the European Union joined the U.S. and Canada in tightening trade measures against China by imposing duties on Chinese electric vehicles. Despite manufacturing activity contracting for the fifth consecutive month, Chinese officials remain confident in achieving the annual growth target of 5%, with new fiscal measures aimed at boosting the economy.

Key Highlights

* China's exports grew by 2.4% in September, the slowest pace in five months.

* Imports rose 0.3%, below the expected 0.9%, reflecting weakened demand.

* The trade surplus narrowed to $81.71 billion, missing forecasts.

* EU imposed new duties on Chinese electric vehicles, adding trade pressure.

* China introduced fiscal measures to support local economies and low-income groups.

China's export growth slowed to 2.4% in September, the weakest rate in five months, indicating softening global demand for Chinese goods. This slowdown followed an 8.7% increase in August and fell short of the 6.0% forecasted by economists. Import growth was also subdued, rising by just 0.3% and missing the 0.9% estimate. These figures contributed to a reduced trade surplus of $81.71 billion, down from $91.02 billion in August, and below the projected $89.80 billion.

The drop in export growth suggests manufacturers are no longer rushing orders before tariffs from various trade partners take effect. Analysts noted that the previous robust performance was largely driven by price cuts, with manufacturers slashing prices to maintain demand amid ongoing trade tensions. The European Union's recent decision to impose additional duties on Chinese electric vehicles, following similar measures by the U.S. and Canada, adds further strain to China's trade outlook.

In response to economic challenges, Chinese officials unveiled plans to increase debt issuance to help local governments and provide support to low-income earners. However, the lack of a specific fiscal stimulus size disappointed markets. With manufacturing activity contracting for a fifth consecutive month and export orders hitting a seven-month low, restoring confidence in the $19 trillion economy remains a long-term endeavor.

Finally

China's slowing export growth reflects a challenging trade environment, with ongoing global trade tensions and domestic economic issues weighing on performance.

Above views are of the author and not of the website kindly read disclaimer