China’s imports expanded year-on-year for the first time since February, a rare sign of growth against a backdrop of weaker overall trade activity in 2023.
| China’s trade data for October offered a mixed picture for the economy’s outlook, as an unexpected pick-up in imports was offset by signs that global demand for Chinese goods is struggling to gain traction.
“Exports conditions remain fragile,” said Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered. “We’ll need more real activity data to verifyInvestors are assessing the sustainability of China’s economic recovery. While figures recently have shown improvement, the rebound remains uncertain amid low consumer and business confidence. Economic data for October pointed to weakness in the manufacturing and services sectors.
The PBOC’s strong control on the daily yuan fixing to support the exchange rate – at a level unseen for well over a decade – may undermine the competitiveness of Chinese exports and encourage imports, according to Ken Cheung, chief Asian FX strategist at Mizuho Bank.