Chinese exports expand faster than expected in Oct

Bloomberg

Chinese exports expanded faster than expected in October, providing support for the recovering economy and driving increasing demand for imports, which rose for a second straight month.
Exports increased 11.4% in dollar terms in October from a year earlier, while imports gained 4.7%, the customs administration said. That left a trade surplus of $58.4 billion for the month. Economists had forecast that exports would climb 9.2% and imports 8.6%.
Exports to the US rose 22.4% while imports expanded 32.9%, according to Bloomberg calculations, as China increases purchases
in order to meet the targets set in the trade deal inked in January.
China’s economic recovery likely continued in October, with early data showing ongoing expansion in manufacturing and a pickup in the services industry.
Strong exports have been a major support to that recovery due to international demand for medical gear and equipment for people to work at home. There may also be a boost from re-openings in other countries, although that may fade as major economies return to virus lockdowns.
The unexpected acceleration in October exports suggests China’s exports are more resilient facing the renewed outbreak of the coronavirus across the world. The slowdown in imports may
reflect more seasonal impact, but growth for a second month in a row suggests a continued rebound in domestic demand, said Chang Shu, chief Asia economist at Bloomberg Economics.
Export growth extended gains in October thanks to electronics exports including new iPhones, according to Xing Zhaopeng, an economist at Australia & New Zealand Banking Group.
“Import slowed surprisingly, due to the moderation of crude oil and coal imports” and the effect of fewer working days this year than in 2019 due to the extended national holiday, he said.