FX.co ★ China Exports Growth Fastest In More Than 2 Years; Imports Fall

China experienced its most significant export growth in over two years this October, while imports fell more sharply than anticipated, reflecting weaker domestic demand, according to official data released Thursday.

Customs data indicated that exports increased by 12.7% year-over-year, a notable rise from September's 2.4% increase, surpassing the forecasted 5.0% growth. In contrast, imports decreased by 2.3% compared to the previous year, following a 0.3% rise in September, whereas economists had projected a 1.5% decline.

Consequently, the trade surplus widened significantly to $95.7 billion, up from $81.7 billion the previous month, far exceeding economists' predictions of $73.5 billion.

In recent years, exports have been the primary driver of economic growth in China, while weak domestic activity and a downturn in the property market have hindered consumption.

The potential second term of Donald Trump as U.S. President could introduce challenges to Chinese trade. During his pre-election campaign, Trump pledged to levy tariffs between 60% and 100% on Chinese imports.

Economist Zichun Huang from Capital Economics anticipates that export levels will likely remain robust in the coming months. Any negative impact from potential Trump-imposed tariffs might not become apparent until the latter half of next year. Additionally, Huang noted that imports are expected to climb in the short term as increased fiscal spending bolsters demand for industrial commodities.