China’s Exports increased by 28.1 percent in dollar terms in September compared to the same month of the previous year and reached 305.7 billion dollars per month, breaking a record.
China’s export growth accelerated in September despite a nationwide electrical power shortage that led to factory closures, increasing against expectations for a slowdown.
According to the data released by the General Administration of Customs on Wednesday, exports increased by 28.1 percent in dollar terms in September compared to the same month of the previous year, reaching a record 305.7 billion dollars per month.
Economists had expected the increase to be 21.5 percent. The increase in imports slowed down to 17.6 percent in the said period and remained below the economists’ expectations of 20.9 percent. Thus, the foreign trade surplus amounted to 66.8 billion dollars.
Export Companies in China are in Bad Shape
In China, exports are a key factor in the economy’s recovery from the pandemic and help offset weak domestic spending. However, exporting companies face some difficulties such as high freight costs, raw material prices, shortage of electricity and environmental barriers.
“Factories probably rushed to complete orders before the week-long holiday in early October, which has led to increased exports,” said Bruce Pang, head of macro and strategy research at China Renaissance Securities Hong Kong.
Customs Administration spokesman Li Kuiwen said that foreign trade growth in the fourth quarter may slow down compared to a year ago due to the base effect and logistics problems, adding, “Some traffic routes were troubled due to supply and demand imbalances. We are following the situation closely,” he said.