China-US trade increases by 8% in first nine months of 2022

Trade between China and the US grew by 8% in the first nine months of 2022, according figures from the Chinese customs authority, with exports to the US seeing solid growth despite ongoing political tension between the superpowers.

According to the data, year-on-year trade between the two countries grew to 3.8 trillion yuan ($523 billion) from January to September. The US remains China’s third-largest trading partner after the EU and ASEAN.

Exports to the US grew 10.1% in September, following export growth in July and August of 15.1% and 12.9% respectively.

Chinese export data for the US did not decline as some US politicians had predicted, showing that the integrated supply chain between China and US remains strong, economist Tian Yun told the Global Times.

The growth in bilateral trade is also in line with the China’s overall foreign trade data, with the country’s foreign trade figures showing an 8.3% year-on-year increase in yuan terms, maintaining strong growth momentum from the previous months despite concerns over weakening overseas demand and a possible global economic recession, said Tian.

Exports to the US stood at 2.93 trillion yuan, an increase of 10.1%, while imports from the US came in at 865 billion yuan, an increase of 1.3%, making the trade surplus with the US 2.07 trillion yuan, a rise of 14.2%.

 

Push for more foreign inward investment

China is to increase efforts to encourage foreign investment in high-end equipment and components for advanced manufacturing and high-tech industries, the country’s leading economic regulator has said.

The National Development and Reform Commission, along with five other central government departments, have been tasked with attracting foreign investment in research and development in the fields of manufacturing, design, logistics, and new energy and low-carbon technologies.

Foreign direct investment into the Chinese mainland grew 16.4% year-on-year to 893 billion yuan ($122.1 billion) in the first eight months of this year, according to the Ministry of Commerce. Investment in high-tech manufacturing grew by 43.1% from the same period a year ago, while that in the high-tech service sector surged 31% year-on-year.

 

GDP rise just below 4%

Overall, China’s gross domestic product grew by 3.9% year-on-year in the third quarter, up from 0.4% in the second quarter, a figure that beat expectations, according to the National Bureau of Statistics (NBS).

In the first nine months of 2022, the country’s GDP was up 3% year-on-year to 87 trillion yuan ($12 trillion). In the first half of this year GDP grew 2.5% percent rise in the first half, the NBS said.

Figures released by the NBS showed China’s value-added industrial output, a gauge of activity in the manufacturing, mining and utilities sectors, grew by 6.3% in September from a year earlier after a 4.2% rise in August.

In the first three quarters of the year, value-added industrial output grew by 3.9% compared with the same period last year, while in the first half it grew by 3.4% from a year earlier.

Retail sales, a key measurement of consumer spending, grew by 2.5% year-on-year in September, from the 5.4% growth in August.

In the first three-quarters of 2022, retail sales rose by 0.7% compared with the same period last year, while in the first half they fell by 0.7% from a year earlier.

Looking forward, China’s economy will continue its steady recovery, aided by support from the central government, China’s top economic regulator has predicted.

Zhao Chenxin, deputy head of the National Development and Reform Commission, said China’s economy rebounded notably in the third quarter, and the nation’s economy is doing well compared with other countries.

Zhao said that China’s economy “has maintained a recovery trend this year despite fluctuations in months such as March, April and July, showcasing its strong resilience and great potential”.

He said: “Despite difficulties and challenges, China has witnessed a gradual rebound in key economic indicators including industrial production, services, investment and consumption with the help of effective government measures to contain Covid-19 and stabilize growth, thus showing a steady recovery trend overall.”