CBN丨China’s exports up 12.7% in October in fastest pace in over two years

Hi everyone. I’m Stephanie LI.Coming up on today’s programChina’s foreign trade edges up 5.2 percent in first 10 months;US companies embrace opportunities at China's import expo in Shanghai.Here’s what you need to know about China in the past 24 hours China’s total goods imports and exports grew by 5.2 percent year-on-year in the first 10 months this year to reach 36.02 trillion yuan (USD5 trillion), extending stable growth and displaying consistent structural improvement, official data showed on Thursday.According to the General Administration of Customs (GAC), exports rose 6.7 percent year-on-year to 20.8 trillion yuan, while imports climbed 3.2 percent year-on-year to 15.22 trillion yuan in the first 10 months.In October alone, exports rose 12.7 percent from a year earlier, the fastest growth in more than two years, while imports fell 2.3 percent year on year. China’s trade surplus rose to USD95.7 billion in October, up from USD81.7 billion in September.Exports far surpassed analyst’s estimates of about 5.5 percent growth and outpaced September’s growth of just 2.4 percent. It was the fastest expansion since July 2022, thanks to a package of the government’s pro-growth policies.Throughout the period, ASEAN remained China’s top trading partner, with bilateral trade volume reaching 5.67 trillion yuan, up 8.8 percent from a year ago, accounting for 15.7 percent of the country’s total foreign trade, followed by the EU with a trade volume at 4.64 trillion yuan, and the US at 4.01 trillion yuan.Between January and October, the bilateral trade between China and the US inched up by 4.4 percent year-on-year to reach 4.01 trillion yuan, the GAC data showed. Over the period, China’s exports to the US grew by 4.9 percent year-on-year to reach 3.04 trillion yuan, while imports up by 2.9 percent to reach 969.48 billion yuan.During the first 10 months, China’s trade with partner countries participating in the Belt and Road Initiative totaled 16.94 trillion yuan, marking a 6.2 percent year-on-year increase.International semiconductor firms – including ASML, Advanced Micro Devices (AMD) and Qualcomm – have put the spotlight on some of their latest products at the ongoing CIIE. They joined about 400 other companies at the Intelligent Industry & Information Technology exhibition, a part of the CIIE. Michael Hart, president of the American Chamber of Commerce in China (AmCham China), said that "Every year we look forward to coming to CIIE, so we can see the existing American presence in China.” The US companies are using CIIE to show the products and services they offer and there are some companies that are doing new launches of products at the expo, said Hart, noting that this is a great place to exhibit to Chinese companies, the Chinese government and the Chinese public, their commitment to China.Greater Bay Area, Greater futureHong Kong hopes to continue utilizing the CIIE to promote the expansion of Hong Kong enterprises in the Chinese mainland with better development, Kent Lyu, the regional director of Eastern and Central China of the Hong Kong Trade Development Council (HKTDC), told media on Wednesday.  This year marks the seventh year for the HKTDC to organize Hong Kong firms to attend the expo, with a total of 52 enterprises organized by the council participating, including 34 enterprises exhibiting in the agriculture and food section and 18 with a presence in the section of trade in services. Hong Kong Chief Executive John Lee Ka-chiu led a delegation of high-level officials to Shanghai on Tuesday to attend the CIIE and take part in a major promotion event. More than 300 Hong Kong enterprises are participating in this year's CIIE to promote quality Hong Kong products and services, representing almost 10 percent of the total number of exhibitors in the enterprise and business exhibition.Next on industry and company newsSinopec has penned a 15-year procurement contract for liquified natural gas with France’s TotalEnergies, the world's third-biggest LNG supplier, at the ongoing CIIE. Sinopec will buy two million tons of LNG from TotalEnergies a year over a 15-year period starting 2028, the Beijing-based company said. On day two of the expo, the Chinese oil major has already signed USD40.9 billion worth of procurement contracts with 38 overseas suppliers.Major multinational automakers, including Volkswagen Group, Ford Motor, and Stellantis, reported disappointing third-quarter sales in China as the country’s fast-growing electric vehicle market continued to favor local brands. Volkswagen sold about 2.1 million cars in China in the first nine months of this year, marking a 10 percent year-on-year drop, according to its interim earnings report. Even the luxury segment faces challenges. Porsche logged a 29 percent drop in China sales, delivering just 43,000 vehicles over the first three quarters. Other brands also reported double-digit declines. Ford sold 133,000 vehicles in China during the three months, a decrease of 11 percent. Stellantis saw sales in China, India, and the Asia-Pacific region contract by 30 percent to just 14,000 units in the third quarter from a year ago.Wrapping up with a quick look at the stock marketChinese shares rallied after the government reported that exports jumped nearly 13 percent in October over a year earlier, the fastest pace in more than two years. The benchmark Shanghai Composite bounced 2.6 percent and the Shenzhen Component gained 2.4 percent. Hong Kong’s Hang Seng index also closed 2 percent higher and the TECH index rose 2.25 percent.