China's export growth slows sharply in September - RTHK
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China's export growth slows sharply in September

2024-10-14 HKT 17:37
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  • Export growth slowed sharply while imports remained sluggish, as authorities wait for recent stimulus measures to perk up weak domestic demand. File photo: AFP
    Export growth slowed sharply while imports remained sluggish, as authorities wait for recent stimulus measures to perk up weak domestic demand. File photo: AFP
China's exports grew at the slowest pace in five months in September, suggesting manufacturers are no longer rushing out orders ahead of tariffs from several trade partners and that global demand for Chinese goods is softening.

Outbound shipments from the world's second-largest economy grew 2.4 percent year on year by value last month, customs data showed on Monday, missing a forecast of six percent increase by a poll of economists.

Exports rose 8.7 percent in August.

Imports edged up 0.3 percent, missing expectations for a 0.9 percent increase and in contrast to the previous figure of 0.5 percent growth.

China's exports grew at their fastest pace in nearly 1.5 years in August, but economists cautioned that officials in the country should avoid becoming too reliant on global demand as they work to bolster overall growth.

On Saturday, officials in Beijing announced plans to ramp up debt issuance to aid local governments in managing their debt problems and provide increased support to low-income earners.

However, they did not state the size of the fiscal stimulus at the highly anticipated news conference, disappointing markets.

Analysts anticipate it will take a long time to restore consumer and business confidence and get the US$19 trillion economy on a more solid footing.

A housing market recovery, in particular, could be a long way off.

Last week, the head of China's state planner said he was "fully confident" of achieving the government's full-year growth target of around five percent.

Manufacturing activity shrank for a fifth straight month in September, with new export orders falling to their worst in seven months.

Analysts have attributed previous months' strong export performance to factory owners slashing prices to find buyers.

The European Commission last week saw its motion to impose additional duties on electric vehicles built in China of up to 45 percent pass in a divided vote of EU member states, joining the US and Canada in tightening trade measures against China.

China's overall trade surplus narrowed to US$81.71 billion in September from US$91.02 billion in August and missed a forecast of US$89.80 billion. (Reuters)

China's export growth slows sharply in September