- Exports to the US, UK, Germany, France fell in September
- Trade with Russia has surged this year, exports expand
According to Bloomberg’s article published on October 24, 2022, China’s exports to many of its largest trade markets contracted in September, more evidence of a slowdown in global demand despite a better-than-expected headline figure.
Exports to the US plunged 11.6% last month from a year ago, falling faster than the 3.8% drop in August, data from the General Administration of Customs showed. Products sold to Germany and France, among the largest trade partners within the European Union, decreased 5.6% and 7.6% respectively, while exports to the United Kingdom dropped 11.8% in September.
Trade was a reliable source of economic growth for China during the pandemic but has quickly been losing momentum over the past months as global demand wanes and fears of a recession ripple across the US and Europe.
While the 5.7% expansion of exports in dollar terms was better than the 4% rise forecast by economists in a Bloomberg survey, the slump with key trading partners shows that the resilience might not last.
In contrast to weakness with other countries, exports to Russia rose 21.2% in September, the third consecutive month of double digit gains. That takes the year-to-date growth in exports with its northern neighbor to 10.3%. Total trade with Russia is up 32.5% in dollar terms this year, the heftiest increase among major partners.
Singapore, Malaysia, India and Italy saw the strong growth in the value of exports, with at a least a 30% expansion so far this year.
Car sales continued to be a bright spot, with export growth soaring on the back of demand for Chinese electric vehicles. The value of shipments in dollar terms surged 129% from a year ago in September, while that of electric vehicles jumped 231%.
