China released its foreign trade data for the month of September, which showed a large increase that exceeded expectations in imports, reflecting the rise in domestic demand, which had witnessed a significant slowdown during the last period due to the consequences of the Corona crisis.
The annual import index in China for the month of September rose by 13.2% after a previous decline of 2.1%, and expectations were for a rise of 0.5%, while exports rose by 9.9% from a previous rise of 9.5% and expectations of 9%.
The rise in Chinese imports in September is the largest increase this year, indicating the recovery of domestic demand in China, along with the continued improvement of exports, which indicated that Chinese exporters are recovering quickly from the epidemic's blow to foreign orders. As the global economy resumes, Chinese companies are rushing to seize market share as their competitors grapple with declining manufacturing capacity.
The data showed that the government's support for the economy began with the control of the pandemic. This boosted domestic demand, especially investment-led demand that boosted imports, and the recent appreciation of the yuan has been positive for imports and household's purchasing power.
Last Friday, the Chinese yuan rose to its highest level in 17 months against the dollar, in light of the current fluctuation in the levels of the US dollar, which is affected by the demand for safe haven in the markets, in addition to the current political instability in the United States with the approaching of presidential elections beginning of November.
Significant rise in imports in China worked to reduce the trade surplus to 37 billion dollars after a previous surplus of 58.93 billion dollars, and expectations indicated a surplus of 60 billion dollars.
The data showed an increase in China's purchases of agricultural and energy products, as China implemented the first phase of the US-China trade agreement, and the resumption of logistics services in the United States and Europe contributed to the strength of China's imports.
Senior trade officials in the United States and China also reaffirmed their commitment to the Phase 1 trade agreement in a phone call in August