CHINA’S total import and export of goods expanded 0.03% year on year to 34.32 trillion yuan (US$4.78 trillion) in the first 10 months of the year, official data showed yesterday.

Exports grew 0.4% year on year to 19.55 trillion yuan for the January-October period, while imports declined 0.5% from a year earlier to 14.77 trillion yuan, according to the General Administration of Customs.

In October alone, the country’s foreign trade rose 0.9% from a year earlier to 3.54 trillion yuan, the data showed.

The country’s exports shrank 3.1% year on year last month, while imports increased by 6.4%, the first gain in eight months and bucking the consensus forecast for a drop.

“The significant improvement in imports may come from rising domestic demand, in particular a demand to replenish stocks,” said Zhou Hao, economist at Guotai Junan International.

Ding Shuang, chief economist for greater China and North Asia at Standard Chartered, said more real activity data are needed to verify whether the strong imports data indicate a recovery in domestic demand.

While figures in recent months have shown improvement in economic activities, China’s economic recovery remains bumpy amid challenges and pressures from weak demand and a complicated international environment. Economic data for October pointed to weakness in the manufacturing and services sectors.

However, economies elsewhere in the region had offered some positive signs for trade. South Korea’s exports, which are seen as a bellwether for global demand and Asia exports, rose for the first time since late last year in October. That has fueled hopes for an improvement in tech industries such as semiconductors.

In the first 10 months of 2023, the Association of Southeast Asian Nations (ASEAN) remained China’s largest trade partner. China’s trade with ASEAN countries rose 0.9% year on year to 5.23 trillion yuan, accounting for 15.2% of the country’s total trade value.

China’s trade with the European Union eased 1.6% from a year earlier, while its trade with the United States declined 7.6% year on year during the January-October period. Its trade with countries along the Belt and Road rose 3.2% year on year.

A breakdown of the data showed China’s exports of machinery and electronic products, accounting for 58.5% of total exports, increased 2.8% during the period, and the export value of automobiles surged 88.5% from a year earlier. (SD-Xinhua)