General administration of customs responds to December’s surge in foreign trade: us-china trade talks send positive signals

financial news (Hong Kong) – China’s imports and exports in December rose 12.7 percent year on year to 3.01 trillion yuan, according to customs statistics, according to a press conference held by the information office of the state council on January 14. Huang guohua, deputy director of the statistics and analysis department of the general administration of customs, said China’s foreign trade grew by double digits in December 2019, with both exports and imports hitting record monthly highs. The main reasons are as follows:

First, since November 2019, China’s manufacturing PMI has expanded for two consecutive months, driving up imports of some raw materials and energy products. Imports of iron ore, copper ore, and refined oil, for example, rose 17.2 percent, 31.9 percent, and 10 percent respectively in December, boosting imports.

Second, due to the rising prices in the international market, the average price of some commodity imports has risen. The average price of iron ore imports, for example, rose 18 percent in December, boosting overall imports by 1.5 percentage points against a 17.2 percent rise in imports.

Third, china-US economic and trade consultation has sent a positive signal and business confidence has risen. In December, exports of toys, plastics, and furniture rose 26.1 percent, 22.7 percent, and 14.2 percent, respectively. The general administration of customs conducted an online survey of 3,000 foreign trade enterprises every month, and the survey data for November and December showed that the number of enterprises expressing optimism about the export situation in the next two to three months was increasing, with the increase in December reaching the highest level since the second half of 2018.

In addition, there is another reason. China’s imports and exports fell in December 2018, down 1.4%. In other words, the year-on-year base of December 2018 is relatively low, and the foreign trade in December 2019 has the nature of restorative growth.

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