Chinese exports are rising much faster than expected, but this is likely to change due to Trump

Exports increased by 12.7 percent last month compared to a year earlier. That is the strongest growth since July 2022. Economists had expected an increase of only 5 percent. Exports have shown an increase for seven months in a row. In September, exports grew by 2.4 percent. Exports have historically been a key driver of the world’s second-largest economy.

However, imports fell more than expected by 2.3 percent. The Chinese economy is suffering from an ongoing crisis in the real estate sector and low confidence among Chinese consumers, who are therefore spending less money.

Beijing is trying to boost consumption at home with support measures. The disappointing imports point to continued weak domestic demand and shows that the government must do more to stimulate spending at home.

Low prices

Due to weak domestic demand, many Chinese companies try to sell their products abroad, often at low prices. However, this flood of cheap Chinese goods is creating resistance in many countries and has led to the introduction of trade barriers for Chinese goods. For example, the European Union introduced higher import tariffs on electric cars from China.

Newly elected US President Donald Trump has threatened to impose tariffs of as much as 60 percent on Chinese goods. That would mean that China would have to find new markets for the products it currently sells to the US. Last year, Chinese companies shipped $500 billion worth of goods to the US, accounting for 15 percent of the value of all its exports.