November 8, 2020–China’s foreign trade expanded 4.6 percent year-on-year in October, helping the country sustain economic growth for the year, despite the COVID-19 pandemic.
Overall, China’s foreign trade grew by 1.1 percent in the first 10 months of the year, according to official data the Chinese government released yesterday. With exports accounting for nearly a fifth of China’s economy, the export growth helped lift China’s GDP by 4.9 percent in the third quarter.
Export Growth Jumps in October
In response to the impact of the global pandemic, the government streamlined customs procedures and provided incentives for cross-border e-commerce.
Mechanical and electrical parts accounted for the largest share of the country’s exports. Textile exports, which include masks, increased 34.8 percent year-on-year, according to China’s State Council. The government also credited private companies for propelling growth. Auto exports, meanwhile, declined by 6.7 percent.
China’s largest trading markets are Southeast Asia, followed by the European Union and the United States.
In October alone, China’s exports grew to their highest level last month since March 2019, rising to 11.4 percent year-on-year, according to the Financial Times, giving the country a positive trade balance of $58.4 billion for the month.
“China’s export machine has flourished during the Covid-19 crisis, with growth over recent months supported by international appetite for its medical equipment and electronics products,” Thomas Hale reports for the FT.
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