China’s trade growth exceeded expectations in September, with exports rising 8.3% year on year, according to official data from the General Administration of Customs. This growth surpasses a Bloomberg forecast of 6.6% and marks the largest expansion since March. Imports also increased, rising 7.4% and outpacing a forecast of 1.9%. The growth in trade is notable, given the ongoing tariff war between China and the US, which has intensified in recent days.
The trade tensions between the world’s two largest economies have been escalating, with the US imposing tariffs on Chinese goods and China retaliating with its own tariffs. The latest escalation came after US President Donald Trump announced additional 100% tariffs on all Chinese goods, in response to Beijing’s announcement of new export controls on rare earths. China currently dominates the global market for rare earths, which are critical components in many high-tech products.
Despite the tensions, Chinese exporters have shown resilience, with shipments to the US reaching $34.3 billion in September, an 8.6% increase from August. However, the ongoing trade war poses significant risks to China’s economy, which has been struggling with a domestic spending slump and intensifying pressure on its export-reliant manufacturing sector.
The trade war has sparked concerns about the potential impact on the global economy, with the International Monetary Fund (IMF) warning of a slowing economy. The IMF meetings, set to begin soon, will likely be dominated by discussions of the US-China trade tensions.
In a recent statement, Trump appeared to cool his rhetoric, saying “Don’t worry about China, it will all be fine!” and stating that the US wants to help China, not hurt it. However, the tariffs imposed by the US remain in place, with Chinese goods facing tariffs of 30% and China’s retaliatory tariffs at 10%.
The ongoing trade war has significant implications for the global economy, and the latest developments will be closely watched by investors and policymakers alike. As the situation continues to evolve, it remains to be seen how the trade tensions will be resolved and what impact they will have on the global economy.