China’s exports and imports for September missed expectations, raising concerns about the performance of one of the key growth drivers in the world’s second-largest economy.
Customs data released on Monday showed exports rising by 2.4% in U.S. dollar terms compared to the same period last year, while imports increased by a modest 0.3%.
Analysts had anticipated stronger growth, with exports projected to climb by 6% and imports by 0.9% year-on-year. Exports have been a vital pillar for China’s economy, which continues to grapple with weak consumer spending and a slowdown in the real estate sector.
However, ongoing trade tensions are expected to challenge China’s ability to sustain strong export growth into next year. The U.S. and European Union have imposed higher tariffs on several Chinese products, including electric vehicles.
Despite these headwinds, China’s trade relationship with the U.S. showed resilience. Exports to the U.S., China’s largest trading partner, rose by 2.2% in September, while imports from the U.S. increased by 6.7%.
Trade with the Association of Southeast Asian Nations (ASEAN), China’s largest regional trading partner, saw exports rise by 5.5% and imports increase by 4.2%.
Exports to the European Union edged up by 1.3%, though imports from the bloc dropped by 4%. China’s exports to Russia, a BRICS partner, surged by 16.6%, but imports from Russia declined by 8.4%.
Export growth in key sectors showed mixed results. Overall auto exports grew by 25.7% year-on-year, while exports of shoes, toys, and smartphones fell. Home appliances, integrated circuits, and ships, however, posted growth in exports.
Domestic demand showed signs of weakness, with China’s crude oil imports dropping by 10.7% in September. Imports of natural gas and coal, on the other hand, increased, reflecting Beijing’s efforts to secure critical energy supplies.
Meanwhile, the country’s rare earths trade, a crucial component for technology and defense, continued to shrink, with exports plunging over 40% and imports down by around 9%.
Looking ahead, China’s National Bureau of Statistics is set to release third-quarter GDP data on Friday, along with reports on retail sales, industrial production, and fixed asset investment for September.