China's exports smash estimates amid rising trade tensions with US
What's the story
China's exports rose by a surprising 8.3% year-on-year in September, beating the 6.6% median forecast by economists surveyed by Bloomberg. The growth rate was higher than August's figure and indicates no signs of a slowdown in China's record-breaking export surge. Meanwhile, imports also grew by an impressive 7.4%, resulting in a trade surplus of $90.5 billion for the month.
Trade resilience
Impact on domestic economy and trade war
The robust demand from markets beyond the US is likely to shield Chinese companies from the additional tariffs proposed by President Donald Trump. This increased overseas sales not only fortify China's position in the ongoing trade war but also give a much-needed boost to its domestic economy. The country is still grappling with deflation and a slump in housing demand and prices.
Growth forecast
China likely to meet official growth target of 5%
China will release its third-quarter economic activity data on October 20. Most analysts expect a slowdown from the first half of the year. However, given a strong performance in H1, it is almost certain that China will meet its official growth target of about 5% for this year.