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.



North Korea Bars Western Influencers from Trade Fair Tour

North Korea has barred Western influencers from joining tourists to an international trade fair, a China-based tour operator said. STR / KCNA VIA KNS/AFP
North Korea has barred Western influencers from joining tourists to an international trade fair, a China-based tour operator said. STR / KCNA VIA KNS/AFP
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North Korea Bars Western Influencers from Trade Fair Tour

North Korea has barred Western influencers from joining tourists to an international trade fair, a China-based tour operator said. STR / KCNA VIA KNS/AFP
North Korea has barred Western influencers from joining tourists to an international trade fair, a China-based tour operator said. STR / KCNA VIA KNS/AFP

North Korea has barred Western influencers from joining a delegation of tourists to an international trade fair in October, a China-based tour operator told AFP on Monday.

Diplomatically isolated North Korea has welcomed sporadic groups of international visitors in recent months, including hundreds of foreign athletes in April for the first Pyongyang International Marathon in six years.

China has historically been the biggest diplomatic, economic and political backer of North Korea, which remains under crippling international sanctions.

Travel agency Young Pioneer Tours (YPT) said on Saturday it would take a group of foreign tourists on a trip to the authoritarian state from October 24 to November 1.

However, the tour would not be open to journalists, travel content creators or influencers, the company said on its website.

YPT co-founder Rowan Beard told AFP the curbs on creators were "a specific request from the North Korean side".

"We anticipate that once the country officially reopens, there may be stricter scrutiny or limitations on influencers and YouTubers joining tours," Beard said.

The company had "no visibility" on when Pyongyang would restart official media delegations, he said.

Several online influencers have shared slickly produced videos from inside North Korea in recent months.

Chad O'Carroll, founder of specialist website NK News, said many influencers tend to have larger audiences than professional journalists, but "they are normally working without editors and tend to gain extra views through sensationalist-style content".

"North Korean authorities likely see few benefits and major risks with allowing social media influencers to visit the country, given what we saw earlier this year," O'Carroll told AFP.

"The result is a community of potential visitors who, in DPRK authorities' minds, are not likely to produce content that is favorable to state interests," he said, using North Korea's official name.

Lavish gifts

The YPT tour, priced at 3,995 euros ($4,704), will depart from the Chinese capital Beijing and take in the Pyongyang Autumn International Trade Fair, North Korea's biggest international business exhibition.

Participants will have a "unique chance" to stroll through more than 450 trade booths exhibiting machinery, information technology, energy, pharmaceuticals, consumer goods and household items.

YPT also said the Pyongyang Chamber of Commerce would "hold a VIP presentation for us for an in-depth overview and insights into the (North Korean) economy".

The itinerary also includes major sights in Pyongyang as well as the first Western visit in more than five years to Mount Myohyang, which boasts a museum of lavish gifts presented to former North Korean leaders.

Chinese people used to make up the bulk of foreign tourists and business visitors to the isolated nuclear nation before it sealed its borders during the Covid-19 pandemic.

However, numbers have not rebounded despite Pyongyang's post-pandemic reopening, a trend that some analysts have attributed to Beijing's anger at North Korea's explicit support for Russia's invasion of Ukraine.