Tariffs hit China's import and export trade
CHINA'S export growth in US dollar terms declined by 3
CHINA'S export growth in US dollar terms declined by 3.2 per cent year on year in September, according to customs data. The decrease was mainly attributed to the 21.9 per cent decline in shipments to the US.
China's shipments to the US decreased by 16 per cent in August, compared to the same month a year earlier, amid the ongoing US-China trade war.
This resulted in average Chinese export growth to the US of negative 15.1 per cent in the third quarter, down from negative 8.2 per cent in Q2, reported American Shipper.
'After adjusting for Lunar New Year distortions, September export growth [to the US] was the lowest single-month reading since January 1996, when the data series was first released by China customs,' Japanese financial services group Nomura was cited as saying.
'The big contraction in the growth of US-bound exports was mainly due to existing higher US tariffs on the US$380 [billion tariff] list and an unfavourable base in September 2018, as Chinese exporters rushed to frontload their shipments to the US ahead of scheduled tariff hikes on the $200 billion [tariff] list.'
In September, China's imports from the US fell by 15.7 per cent year on year after declining by 22.3 per cent in August, dragging down the quarterly average growth to minus 19.1 per cent year on year in the third quarter, following minus 27.9 per cent in Q2.
'As a result, China's trade surplus with the US narrowed to $25.9 billion in September from $27.0 billion in August,' said Nomura.
Nomura added that China's total export growth was 9.9 per cent in 2018 and negative 0.1 per cent in January-September 2019. This slowdown of export growth 'should bring down China's gross domestic product by around 1.3 percentage point over January-September this year.'