China's foreign trade up 0.7% in first 3 quarters of 2020

APD NEWS

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China saw its foreign trade rise by 0.7 percent year on year in the first three quarters of 2020, with exports growing by 1.8 percent and imports falling by 0.6 percent, the General Administration of Customs (GAC) said Tuesday.

The country's foreign trade volume in goods reached 23.12 trillion yuan during the period. Exports grew to 12.71 trillion yuan and imports dropped to 10.41 trillion yuan, according to the GAC.

Third-quarter imports and exports increased by 7.5 percent to 8.88 trillion yuan, as China's foreign trade has been recovering quarter on quarter and is now registering positive cumulative growth, GAC spokesperson Li Kuiwen told a news conference.

"China's exports and imports have consistently beaten the market expectation," Wang Dan, chief economist with Hang Seng Bank China, told CGTN.

Wang said that imports surged in September, mostly in raw materials and other industrial inputs, indicated strong momentum in domestic industrial production. "The overall trade performance seems to suggest that China's dual circulation strategy has withstood the test," she added.

Foreign trade with ASEAN, China's largest trading partner, registered 3.38 trillion yuan, with an increase of 7.7 percent, accounting for 14.6 percent of the country's total foreign trade volume. It is followed by trade with the EU, the U.S. and Japan, up 2.9 percent, 2 percent, and 1.4 percent, respectively.

"The trade surplus with the U.S. also shrank, driven by China's active purchase of U.S. agricultural and energy products. This suggests China's good will to fulfill its commitment of the phase one trade deal," she said, adding demand from the U.S., Europe and ASEAN all recovered strongly, not only in medical devices, but also in electronics and electric machinery.

Growth of exports of electro-mechanical products re-entered positive territory and exports of supplies to combat COVID-19 grew fast. Exports of medicines and pharmaceutical products increased by 21.8 percent and those of medical equipment by 48.2 percent.

"This is partly due to the furlough scheme in western countries that have supported workers' income and spending," Wang explained. "We expect the foreign demand to stay strong in the fourth quarter with the holiday season boost."

The private sector is playing a more prominent role in stabilizing foreign trade. Imports and exports in the sector increased by 10.2 percent to 10.66 trillion yuan in the first three quarters, accounting for 46.1 percent of the country's total foreign trade volume, 4 percentage points higher year on year. Foreign-invested enterprises were responsible for 8.91 trillion yuan in foreign trade and about 38.5 percent of the country's total foreign trade volume. State-owned enterprises witnessed 3.46 trillion yuan in imports and exports, taking up 15 percent of the total foreign trade volume.

Imports of bulk commodities such as iron ore, crude oil, coal and natural gas, and key agricultural products like soybeans and meat all increased. Imports of iron ore were up 10.8 percent, crude oil by 12.7 percent, soybeans 15.5 percent, and pork by a remarkable 132.2 percent.

(ASIA PACIFIC DAILY)