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China’s exports grow surprisingly strong | Free Press

Beijing (dpa) – China’s exports unexpectedly rose sharply in October. With rising global demand and the recovery of the second-largest economy from the Crown crisis, exports in US dollars were up 11.4 percent compared to the same month last year.

As announced by Chinese customs in Beijing on Saturday, foreign trade increased by a total of 8.4 percent.

By contrast, China’s imports grew just 4.7 percent in October. The increase is much lower than expected and weaker than in the previous month at 13.2 percent. However, experts pointed to lower economic activity due to the unusually long holiday week around China’s national holiday on October 1, a strong month compared to the previous year, and lower oil imports.

China benefited from higher global demand in October, before the number of cases of infection rose again in the United States and Europe. Therefore, there are concerns that the new wave could slow exports in many other countries in China. Export orders did not grow as fast in October as before, even if they had continued to grow for the third month in a row.

Since China has the virus largely under control, its economy has also returned to normal since the summer. As the only major economy, the People’s Republic is likely to achieve growth this year. The International Monetary Fund (IMF) predicted an increase of 1.9 percent.

The sharp decline caused by the Crown crisis earlier in the year was largely offset by the fall. In the third quarter, the Chinese economy again grew by 4.9 percent. For the next year, the monetary fund in China even anticipates 8.2 percent growth.

The first infections with the new Sars-CoV-2 virus were discovered in December in the central Chinese metropolis of Wuhan; then the pandemic developed that dragged the global economy into recession.

After initially viewing the outbreak in Wuhan as slow and inappropriate, China has taken it vigorously since late January. The virus was controlled with strict quarantine measures, mass testing, contact tracing, and strict entry restrictions.

Since the summer, China has only experienced a few small local outbreaks, such as the most recent in Kashgar, in northwest China, but it reacts immediately with strict measures. Otherwise, there are only a few imported cases. Then everyday life has normalized. The industry is also recovering as both supply and demand improve.

The mood on the executive floors of Chinese companies is better than it has been in nearly ten years, as economic barometers showed this week. The Purchasing Managers Index (PMI) of the business magazine “Caixin” for the manufacturing sector rose from 53.0 to 53.6 points in October, the highest level since January 2011.