China’s trade surplus narrowed in October as imports grew faster than exports, even as customs data showed shipments abroad continued to expand alongside a stronger yuan.
China’s General Administration of Customs (GAC) data showed exports totaled $412.3 billion, up 35.2% from a year earlier. Imports reached $307 billion after rising 41.6%. The monthly trade surplus was $105.3 billion, down from $133.5 billion in September. For the first 10 months of the year, the surplus topped $1.04 trillion. Anadolu Agency also cited higher oil prices linked to the Middle East conflict as a factor behind import growth.
Asian markets analyst Sadi Kaymaz told Anadolu Agency that the yuan had gained about 5% against the U.S. dollar this year. He said demand for AI hardware supported exports, with Chinese chip exports doubling in value.
Kaymaz said lower costs for imported energy and industrial inputs helped cushion exporters from the currency’s rise. He also pointed to slower price increases in China than in its trading partners as another factor easing pressure on exporters. The effects varied by industry: low-margin textiles, toys and furniture had slowed slightly and were more sensitive to exchange-rate movements, he said.
Kaymaz credited the People’s Bank of China (PBOC) with giving exporters more room to adjust by moderating the yuan’s rise. A stronger yuan can also reduce the local-currency value of exporters’ dollar receipts, as EconoTimes previously reported.
The PBOC announced that the reserve requirement on foreign-exchange deposits will rise from 4% to 6%, effective Nov. 15. The central bank said the measure is intended to strengthen foreign-exchange liquidity management. Anadolu Agency reported that the decision had fueled expectations it could halt the yuan’s appreciation.
