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China’s Exports This Year Have Already Beaten All of 2020’s By October
Bloomberg News
November 8 2021
China’s export strength continues to surprise markets, with another bumper month in October for shipments from the world’s factory pushing the total so far this year past the amount for all of 2020.
There were $300 billion in exports from Chinese companies last month, just below the record seen in September and the 13th straight month of double-digit growth. Even with a faster-than-expected rise in imports, that took the trade surplus to an all-time high of almost $85 billion, government data released Sunday showed.
Shipments to the European Union were at a record high, up 44% from the same month in 2020, as reopening economies and the upcoming holiday season drove demand. Purchases by U.S. companies and consumers were also strong, just off the record se in September.
Global container shipping costs peaked and began falling in September, likely providing a boost, although ocean freight is still several times more expensive than it was before the pandemic.
The persistence of China’s export strength has surprised economists who predicted that global spending on made-in-China goods would ease as more countries re-open this year. That proved premature as the more infectious delta variant spread throughout the world.
China’s virus controls meant its factories won orders this year as large-scale outbreaks in countries such as Vietnam, India and Malaysia caused business closures.
Chinese companies also exported higher-value products: The country sold almost no vaccines outside its borders before the pandemic, but shipped shots worth $11.7 billion in the first nine months of the year. Automobile exports more than doubled so far in 2021 as the country emerged as a production hub for electric vehicle manufacturers including Tesla.
Read More: China Ready to Cut Tariffs When RCEP Takes Effect
However, while the record trade surplus is cushioning China’s economy from weakening domestic demand and giving policy makers room to delay stimulus, it won’t be enough to keep growth from slowing further. Gross domestic product is now so large that overseas demand can’t replace easing investment and consumer spending.
One nation that isn’t benefiting from the more robust global trade outlook is Australia. Chinese government controls on steel output, housing market problems and a slowdown in investment have capped demand for Australia’s main export of iron ore, with both prices and export volumes falling.
Bloomberg News
November 8 2021
China’s export strength continues to surprise markets, with another bumper month in October for shipments from the world’s factory pushing the total so far this year past the amount for all of 2020.
There were $300 billion in exports from Chinese companies last month, just below the record seen in September and the 13th straight month of double-digit growth. Even with a faster-than-expected rise in imports, that took the trade surplus to an all-time high of almost $85 billion, government data released Sunday showed.
Shipments to the European Union were at a record high, up 44% from the same month in 2020, as reopening economies and the upcoming holiday season drove demand. Purchases by U.S. companies and consumers were also strong, just off the record se in September.
Global container shipping costs peaked and began falling in September, likely providing a boost, although ocean freight is still several times more expensive than it was before the pandemic.
The persistence of China’s export strength has surprised economists who predicted that global spending on made-in-China goods would ease as more countries re-open this year. That proved premature as the more infectious delta variant spread throughout the world.
China’s virus controls meant its factories won orders this year as large-scale outbreaks in countries such as Vietnam, India and Malaysia caused business closures.
Chinese companies also exported higher-value products: The country sold almost no vaccines outside its borders before the pandemic, but shipped shots worth $11.7 billion in the first nine months of the year. Automobile exports more than doubled so far in 2021 as the country emerged as a production hub for electric vehicle manufacturers including Tesla.
Read More: China Ready to Cut Tariffs When RCEP Takes Effect
However, while the record trade surplus is cushioning China’s economy from weakening domestic demand and giving policy makers room to delay stimulus, it won’t be enough to keep growth from slowing further. Gross domestic product is now so large that overseas demand can’t replace easing investment and consumer spending.
One nation that isn’t benefiting from the more robust global trade outlook is Australia. Chinese government controls on steel output, housing market problems and a slowdown in investment have capped demand for Australia’s main export of iron ore, with both prices and export volumes falling.
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