China Export Growth Jumps To 19 Month High, Defying Surging Yuan
While the global economy continues to suffer the consequences of the covid pandemic, with much of Europe entering lockdown 2.0, China's economy is plowing ahead as if nothing ever happened. While a big part of China's economic strength can be attributed to the record surge of total credit injected in the system in 2020…
… strong trade has also played a major part in the economic rebound: Overnight China reported that exports accelerated to 11.4% Y/Y in October from 9.9% Y/Y in September, the highest print since March 2019, with sequential growth up to +3.3% month-on-month (sa non-annualized) in October vs. 1.1% expansion in September. At the same time, imports moderated in October and grew 4.7% yoy compared with the 13.2% yoy increase in September, as temporary factors behind the strong imports in September - such as Huawei's front-loading of chip imports - unwound.
In summary, while China's export growth strengthened further in October on the back of stronger global growth and market share gains helped by stronger home related products, Import growth slowed in October on the unwinding of front-loaded chip imports by Huawei in September.
https://www.zerohedge.com/markets/china-export-growth-jumps-19-month-high-defying-surging-yuan