China posted a record monthly trade surplus which increased by 27.1% in October in comparison to the corresponding month last year.
According to data from the General Administration of Customs on Sunday, exports surged to $300.2 billion despite supply-chain disruptions globally.
The growth exceeded economist expectations of a 22.8% increase as it became the 13th consecutive month of double-digit growth. Imports jumped by 20.6%, resulting in a trade surplus of $84.54 billion.
The country’s trade growth has been maintained at higher than pre-pandemic levels throughout the year. Its exports during October have already exceeded all of 2020.
The impressive trade performance is helping the economy that has slowed drastically in recent months owing to weak domestic demand. The weak demand is a result of a real estate downturn, power shortages resulting in slowed industrial output, and slow consumer spending exacerbated through sporadic outbreaks of the COVID-19 virus.
China’s coal imports increased almost twofold in October compared to last year as Beijing struggled to deal with power shortages caused by a shortage of coal and surging demand for electricity, especially from export-oriented manufacturers.
On the other hand, natural gas which is seen as an alternative to coal saw its imports soaring by 22% within the initial 10 months of the year.
As economies resume post-pandemic, global trading has been at record levels this year. This has resulted in straining supply chains in numerous countries owing to shortages of containers and ships along with capacity at ports, including drivers who deliver goods to retailers.
According to customs data, China’s exports to the European Union and the U.S. have increased sharply among its main trading partners this year.
China’s trade surplus with the U.S., a source of trade tensions between the two largest economies in the world, jumped to 2.08 trillion yuan ($325 billion) during the 10 months till October from 1.75 trillion yuan in the previous year, partially because Chinese imports of U.S. soybeans decreased owing to weather-related issues in the last few months.
Customs administration said that machines and electrical products contributed nearly 60% of the exports by the value this year.
An analyst at Goldman Sachs Group Inc. said in a note that labor-intensive products including clothing and plastic items made up another 18%. Goods including household appliances, furniture, and lightings experienced the largest export growth in October.
China is the world’s largest source for most commodities as it has a construction-heavy economy.
Demand for construction-related goods slowed down this year owing to China’s property market downturn, with iron ore imports reducing in volume terms in October.
