China's narrowing trade slump boosts recovery prospects, but challenges persist
By Joe Cash and Liangping Gao
BEIJING (Reuters) -China's exports and imports shrank at a slower pace for a second month in September, customs data showed on Friday, adding to the recent signs of a gradual stabilisation in the world's second-biggest economy thanks to a raft of policy support measures.
The trade report should provide some encouragement to authorities, although stiff challenges remain in an economy facing persistent deflationary pressure, a long-running property crisis, a slowdown in global growth and geopolitical tensions.
Outbound shipments in September declined 6.2% from a year ago, following a drop of 8.8% in August, and beating economists' forecast for a 7.6% fall in a Reuters poll.
The figures were backed up by new export orders in an official factory survey two weeks ago which showed improvement last month, partly because of a peak export shipping season for Christmas products and favourable base effects.
«There's increasing evidence that the cyclical upturn in the global electronics sector is driving a bottoming-out of global trade and China's trade data is the latest sign,» said Xu Tianchen, senior economist at the Economist Intelligence Unit.
«This gives reason for optimism about a rosier trade picture in 2024,» he said.
South Korean exports to China, a leading indicator of China's imports, fell at their slowest in 11 months in September. Semiconductors make up the bulk of their trade, signalling improving appetite among Chinese manufacturers for components to re-export in finished goods.
Global trade activities, represented by the Baltic Dry Index, also reported notable growth in September.
However, Lv Daliang, spokesperson of the General Administration of Customs, said at a press conference
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