Beijing: China’s foreign trade dropped nine per cent year on year to 2.06 trillion yuan (USD 325 billion) in October, the eighth consecutive monthly decline as exports and imports registered a sharp decrease in the midst of continued slowdown of the world’s second largest economy.
Exports dropped 3.6 per cent to 1.23 trillion yuan and imports plunged 16 per cent to 833 billion yuan. The trade surplus surged 40.2 per cent to 393 billion yuan (USD 65.5 billion), the General Administration of Customs said.
In the first 10 months, foreign trade dropped 8.1 per cent year on year to 19.93 trillion yuan. They were separated into 11.5 trillion yuan for exports, down 2 per cent; and 8.47 trillion yuan for imports, down 15.2 per cent.
The trade surplus expanded by 75.3 per cent to 2.99 trillion yuan, state-run Xinhua news agency reported.
The trade decline continue as the economy slipped below seven per cent in the Q3 for the first time since 2009.
The government has finalised the 13th five year plan to be implemented from next year which target 6.5 per cent GDP.
China reported 2.87 trillion yuan of trade with the European Union, its largest trade partner, in the first ten months, down 7.9 per cent year on year; 2.85 trillion yuan with the US, the second-largest trade partner, up 2.4 per cent, according to the GAC data.
Meanwhile, trade with the Association of Southeast Asian Nations, the third-largest trade partner, and the fifth trade partner Japan dropped 2.4 per cent and 10.7 per cent year on year to 2.34 trillion yuan and 1.42 trillion yuan respectively.
Foreign trade of private firms dropped 2.8 per cent year on year in the first 10 months to 7.28 trillion yuan, accounting for about 36.5 per cent of China’s total exports during the period.
But exports of private firms rose 2 per cent year on year.
In contrast, state-owned enterprises witnessed a sharper foreign trade fall of 13.2 per cent year on year to 3.33 trillion yuan.
HSBC analyst Qu Hongbin attributed the drops mainly to commodity prices, subdued external and internal demand, noting that exports to emerging markets experienced sudden decline.
China exported more mechanical and electrical products while exporting fewer labor-intensive products such as clothing, shoes and textiles in the first ten months.
Exports of mechanical and electrical products climbed 1.4 per cent to 6.58 trillion yuan, accounting for about 57.4 per cent of the country’s total exports in the first ten month, Xinhua reported.