China's imports, exports surge as global economy reopens

Exports in September rose 9.9% from a year earlier, customs data showed on Tuesday, broadly in line with analysts' expectations and up from a solid 9.5% increase in August. The strong trade performance suggests Chinese exporters are making a brisk recovery from the coronavirus pandemic's hit to overseas orders. As the global economy restarts, Chinese firms are rushing to grab market share as their rivals grapple with reduced manufacturing capacity. China's factory activity has also picked up as international trading gradually resumes. But some analysts warn exports could peak soon as demand for Chinese-made protective gear recedes and the base effect of this year's massive declines wears off. Imports surged 13.2%, returning to growth from a fall of 2.1% in August and much stronger than expectations for a 0.3% increase. The rise in imports pushed the trade surplus for September down to $37 billion, compared with $58.93 billion in August and lower than an expected $58.00 billion. Already heightened U.S.-China tensions are expected to escalate ahead of the U.S. presidential election. China remains well behind on its pledge to boost purchases of U.S. goods under an agreement that was launched in February. China's trade surplus with the United States narrowed to $30.75 billion in September from $34.24 billion in August. Top U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal in a phone call in August.