China's Exports Miss forecasts as Lone Bright Spot Fades

Employees work on solar photovoltaic modules that will be exported at a factory in Lianyungang, in China's eastern Jiangsu province on January 4, 2024. (Photo by AFP)
Employees work on solar photovoltaic modules that will be exported at a factory in Lianyungang, in China's eastern Jiangsu province on January 4, 2024. (Photo by AFP)
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China's Exports Miss forecasts as Lone Bright Spot Fades

Employees work on solar photovoltaic modules that will be exported at a factory in Lianyungang, in China's eastern Jiangsu province on January 4, 2024. (Photo by AFP)
Employees work on solar photovoltaic modules that will be exported at a factory in Lianyungang, in China's eastern Jiangsu province on January 4, 2024. (Photo by AFP)

China's export growth slowed sharply in September while imports also unexpectedly decelerated, undershooting forecasts by big margins and suggesting manufacturers are slashing prices to move inventory ahead of tariffs from several trade partners.

Last month, export momentum had been one bright spot for the Chinese economy that has struggled to gain traction due to weak domestic demand and a property market debt crisis, adding to the urgency for stronger stimulus.

Outbound shipments from the world's second-largest economy grew 2.4% year-on-year last month, the slowest pace since April, customs data showed on Monday, missing a forecast 6.0% increase in a Reuters poll of economists and a 8.7% rise in August.

Imports edged up 0.3%, missing expectations for a 0.9% rise and softer than 0.5% growth previously.

The weak data does not bode well for exports in coming months as just under a third of China's purchases are parts for re-export, particularly in the electronics sector.

The European Commission on Oct. 4 saw its motion to impose additional duties on electric vehicles built in China of up to 45% pass in a divided vote of EU member states, joining the US and Canada in tightening trade measures against China.

China's overall trade surplus narrowed to $81.71 billion in September from $91.02 billion in August and missed a forecast of $89.80 billion.

China's trade surplus with the United States narrowed to $33.33 billion in September from $33.81 billion in August, customs data showed on Monday.

Manufacturing activity shrank sharply in September, according to a recent factory owners' confidence survey, with new export orders falling to their worst in seven months.

Analysts have attributed previous months' strong export performance to factory owners slashing prices to find buyers.

Analysts anticipate it will take a long time to restore consumer and business confidence and get the $19 trillion economy on a more solid footing. A housing market recovery, in particular, could be a long way off.

That said, China's iron ore imports rose 2.9% last month year-on-year, partly on hopes for improved demand over September and October, the peak construction season, while the country's copper imports climbed from a month prior too.

New bank lending in China missed forecasts in September, separate data released by the People's Bank of China showed, although household loans, including mortgages, rose to 500 billion yuan in September from 190 billion yuan in August, according to Reuters' calculations.



Saudi Arabia, France Explore Civil Aviation Investment, Deeper Cooperation 

The meeting was held as part of the 55th annual Paris Airshow, taking place from June 16 to 22. (SPA)
The meeting was held as part of the 55th annual Paris Airshow, taking place from June 16 to 22. (SPA)
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Saudi Arabia, France Explore Civil Aviation Investment, Deeper Cooperation 

The meeting was held as part of the 55th annual Paris Airshow, taking place from June 16 to 22. (SPA)
The meeting was held as part of the 55th annual Paris Airshow, taking place from June 16 to 22. (SPA)

A high-level delegation from Saudi Arabia’s civil aviation sector, headed by General Authority of Civil Aviation (GACA) President Abdulaziz bin Abdullah Al-Duailej, held the Saudi-French Roundtable Meeting in Paris on Tuesday.

The meeting brought together leading French companies specializing in civil aviation, along with chief executives, the deputy chief executive for aviation safety and environmental sustainability, officials, and experts in aviation, airports, and related services. More than 65 public and private entities from both countries participated.

The meeting was held as part of the 55th annual Paris Airshow, taking place from June 16 to 22.

The meeting aimed to discuss ways to strengthen cooperation, explore investment opportunities, and expand areas of privatization and technology transfer.

It highlighted national priorities and projects in the sector, while facilitating the exchange of views on the future of the aviation industry, addressing shared challenges, and aligning efforts to build strategic partnerships that support infrastructure development, foster innovation, and promote sustainability in aviation, reinforcing Saudi Arabia's position as a global logistics hub and a key center for air transport.

Participants discussed available investment opportunities in the civil aviation industry and the attractive investment environment the Kingdom offers to both local and international investors.

They also underscored national initiatives, privatization prospects, and opportunities in airport infrastructure, air navigation services, and advanced aviation technologies.

These efforts reflect Saudi Arabia’s commitment to the sustainable development of the sector and its positive contribution to the global aviation industry, in line with its strategic interests and the objectives of its Vision 2030.