During the month of October, the growth of import and exports in the second largest economy in the world eased by the end of the first half of the year. However, the current rate of the growth seen during the past month is expected to decline slightly as the country continues to address the issue regarding the pollution caused by its factory production.
According to the official report, exports in China rallied by 6.9% during the month of October compared to the same month last year. However, this was lower than most analysts expectations of a 7.2% growth year over year and was a bit lower than the growth of 8.1% during the month of September.
Import data also jumped by 17.2% year over year for the month of October this time
On the other hand, this was taken as a sign of a stabilizing economy for China by analysts based on the recent reported numbers supported by the efforts of the country in implementing tighter rules in cutting down the country’s ties with heavy debts that continues to weigh in on the company’s overall economic and trading activities.
Trade Relationship With US
On the other hand, China’s huge trade surplus with the United States has been railed by U.S. President Donald Trump who is currently in the region. The relationship between the two countries was projected to take a positive path following the official report revealing a good surplus between China and the United States given the recent activity between the two countries.
The recent official data have revealed that shipments from China to the United States have grown by 8.3% year over year in October while imports have risen by 4.3% leading to a trade surplus worth $26.62 billion with the United States for the month of October. However, this is slightly lower than the previous data of a trade surplus worth $28.08 billion from the month of September.
The tension between the two countries remains fragile as Trump arrives in Beijing during the week. The market is also currently still aware of Trump’s comments regarding the trade deficit with China which the US President commented as horrible and embarrassing.