Chinese exports decline 15.2 per cent, improve from August

The Chinese General Administration of Customs stated on their website that both imports and exports declined in September.

The People’s Republic of China’s exports declined by 21.3 per cent ($846.6 billion) and imports fell down by 3.5 per cent ($103 billion) between January and September, according to BBC News. However, both import and declines were an improvement from August when exports contracted 23 per cent and imports went down 17 per cent. Analysts believe that the slowing decline, according to The Trading Room, is a positive sign for the world’s third-largest economy. Dong Tao, an Economist with Credit Suissie in Hong Kong, said “Exports are improving by not so much, bearing in mind that the Lehman shock was September of last year, which created a meaningful statistical base. Overall, export performance will be much better in the months to come. I think it’s going to be sustainable and it’s going to accelerate. There are some rush orders coming to China for Christmas, so I expect probably a pretty strong rebound in November and December.” Brian Jackson, a Hong Kong-based Senior Strategist at the Royal Bank of Canada, said, “Today’s export numbers are encouraging and in line with recent PMI survey data showing improved export orders. Some of the recent US data also point to stronger demand for China’s exports in the months ahead.” China’s surplus was still in the green since the beginning of the year but fell 26 per cent from one year ago. China’s Vice Minister of Commerce, Zhong Shan, said that the exports of the nation are still facing harsh times and the government has added tax rebates, increased tax refunds and improved export credit insurance. Douglas Irwin, a Trade Economist at Dartmouth College, believes, according to The Wall Street Journal, that this data will be irrelevant in the future because China is still growing and "they'll be buying stuff." The Chinese Central Bank has also suspended the rise in the Chinese Yuan Renminbi against the United States Dollar. $1USD = 6.83CNY. Nevertheless, Jim Rogers, co-founder of the Quantum Fund and founder of the Rogers Commodity Index, has stated in many interviews that the Chinese government has enough money for a rainy day and now it’s raining.