China exports resist tariff pressure but imports weaken

Demand for Chinese exports accelerated in September despite the challenge posed by Donald Trump’s tariff measures, but a weaker domestic outlook weighed on import figures.

Export growth picked up to 14.5% year-on-year last month from 9.8% in August, according to official figures. This beat the market consensus of 8.2%, which had factored in a contractionary effect of levies. Exports to the US also accelerated, albeit at a lower rate than the rest of the world.

Import growth continued to cool, however, dropping to 14.3% y/y from 19.9%, falling under an average market forecast of 15.0%. This was likely due to a combination of slowing of commodity price increases and shaky demand.