China’s trade surplus expanded significantly in October, driven by a stronger-than-expected rise in exports alongside a decline in imports due to weak domestic demand.
The trade balance reached US$95.27 billion (A$143.88 billion), up from $81.71 billion in September and well above the forecasted surplus of $73.5 billion, according to customs data released Thursday.
Exports surged by 12.7% year-on-year, far exceeding the anticipated 5% growth and marking a substantial increase from the previous month’s 2.4% rise.
This growth reflects robust overseas demand, with China’s manufacturing sector showing resilience despite recent Western trade tariffs, especially in the electric vehicle market.
However, domestic demand remained subdued as imports dropped by 2.3% year-on-year, a sharper decline than the forecasted 1.5% decrease and a reversal from a modest 0.3% increase in September.
In response to the economic challenges, Beijing recently introduced its most assertive stimulus measures in years, aimed at stimulating local growth. The precise scale and impact of these policies, however, remain uncertain.