China’s exports saw an unexpected increase of 0.5% in November compared to the same period last year, defying predictions of a 1.1% decline. However, imports fell by 0.6%, missing the forecast for a 3.3% increase. The overall trade for the first 11 months of 2023 declined by about 5% to 6% for both exports and imports. Analysts believe that the uptick in exports may be due to businesses cutting prices to boost volume, with external demand still relatively weak. The value of China’s exports to the US rose by 7% in November, while exports to the European Union fell by 14.5% and to the Association of Southeast Asian Nations by 7%.
Exports of toys and electronics increased, while cars continued to see double-digit growth. However, clothing, shoes, and furniture exports declined. On the import side, China purchased less from the US and Southeast Asia, while EU purchases increased slightly. Last month, China imported less crude oil, leading to a drop in both price and volume.
However, rare earth imports doubled from a year ago. Global demand for Chinese goods has fallen amid slowing global growth. While a monthly Caixin survey showed an uptick in November, new export orders remained in contraction for the fifth straight month. China’s National Bureau of Statistics reported that the manufacturing purchasing managers’ index unexpectedly ticked lower to 49.4 in November from 49.5 in October.
Analysts highlight the challenges in both domestic and overseas demand and suggest that policy support focusing solely on the supply side may not yield lasting results.
