China's September Imports, Exports Surge

The mainland's imports grew at their fastest pace this year in September, while exports extended strong gains as more trading partners lifted coronavirus restrictions in a further boost to the world's second-biggest economy.

Exports in September rose 9.9% from a year earlier, customs data showed on Tuesday, broadly in line with analysts' expectations and up from a solid 9.5% increase in August.

The strong trade performance suggests Chinese exporters are making a brisk recovery from the coronavirus pandemic's hit to overseas orders.

As the global economy restarts, Chinese firms are rushing to grab market share as their rivals grapple with reduced manufacturing capacity.

"A jump in imports suggests that domestic investment spending remains strong," Capital Economics Senior China Economist Julian Evans-Pritchard said. "Meanwhile, exports remained strong, most likely thanks to the recent strength of retail sales among China's major trading partners."

Chinese factory activity has also picked up as international trading gradually resumes.

But some analysts warn exports could peak soon as demand for Chinese-made protective gear recedes and the base effect of this year's massive declines wears off.

Imports surged 13.2%, returning to growth from a fall of 2.1% in August and much stronger than expectations for a 0.3% increase.

Wang Jun, chief economist at Zhongyuan Bank, said the data showed government support for the economy has kicked as the epidemic comes under control.

"This has boosted domestic demand, especially investment-led demand, which buoyed imports," Wang said.

"The other factor is the yuan's recent appreciation, which is good for imports and people's spending power."

The rise in imports pushed the trade surplus for September down to US$37 billion, compared with US$58.93 billion in August and lower than an expected US$58 billion.

China's trade surplus with the United States narrowed to US$30.75 billion in September from US$34.24 billion in August. (Reuters)