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 strong growth in the value of exports, with at 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%.
