Chinese imports leapt last month, boding well for a strengthening of domestic demand in an economy that has become a major driver of global growth.
The unexpectedly big increase in imports also reduced China’s politically contentious trade surplus ahead of US Congressional hearings next week on whether to punish Beijing for what many in Washington see as an unfairly undervalued yuan.
Imports jumped 35.2 percent last month compared with a year earlier, easily beating July’s 22.7 percent rise and market forecasts of a 26.1 percent increase, China’s General Administration of Customs said yesterday.
PHOTO: AFP
Annual export growth slowed to 34.4 percent last month from 38.1 percent in July, but was close to expectations of a 35 percent rise.
That left China with a trade surplus of US$20 billion, still eye-popping but down from US$28.7 billion in July and well below the median forecast of US$27.1 billion.
Dong Xianan (董咸安), chief macroeconomist with Industrial Securities (工業證券) in Beijing, said the data implied a strong rebound in domestic demand.
“A possible reason is that China increased imports of raw materials in the last week of August, driven by political pressure as well as low global commodity prices,” he said.
Coincidentally or not, the Chinese central bank let the yuan climb yesterday to its highest level since it was depegged from the dollar on June 19. Still, the yuan has gained less than 1 percent against the US currency since then.
Moreover, China’s rolling 12-month trade surplus widened last month to US$177.1 billion from US$172.8 billion, handing ammunition to critics who say the country is fixated on exports and is fueling unhealthy global economic imbalances.
Separately, growth in China’s property prices slowed for the fourth straight month last month, National Bureau of Statistics data showed yesterday, suggesting that government efforts to pop a feared speculative bubble are paying off.
Housing prices in 70 major cities rose 9.3 percent year-on-year last month, it said, down from 10.3 percent in July.
The slower growth came after China imposed a range of measures to prevent the real-estate sector from overheating and causing a bubble that analysts say could derail the economy.
Prices had surged 12.8 percent in April, the biggest on-year rise for a single month since July 2005, when the survey was widened to 70 cities from 35.
On a monthly basis, property prices were unchanged last month from July, the bureau said.
NETWORK-MAPPING PROJECT: The database contains 170 detailed files of Taiwanese politicians and about 23 million records of household registration data in Taiwan China has developed a network-mapping project targeting political figures and parties in Taiwan to monitor public opinion during elections and to craft tailored influence campaigns aimed at dividing Taiwanese society, according to documents leaked by Chinese technology firm GoLaxy (中科天璣). The documents, collected by Taipei-based Doublethink Lab, showed a database was specifically created to gather detailed information on Taiwanese political figures, including their political affiliations, job histories, birthplaces, residences, education, religion and a brief biography about them. Several notable Taiwanese politicians are in the database, including President William Lai (賴清德), former president Tsai Ing-wen (蔡英文), Minister of Foreign Affairs Lin Chia-lung (林佳龍),
KEY INDUSTRY: The vice premier discussed a plan to create a non-red drone supply chain by next year, which has been allocated a budget of more than NT$7.2 billion The government has budgeted NT$44.2 billion (US$1.38 billion) to cultivate Taiwan’s uncrewed aerial vehicle (UAV) industry over the next five years, which would make the nation a major player in the industry’s democratic supply chain in the Asia-Pacific region, Premier Cho Jung-tai (卓榮泰) said yesterday. Cho made the remarks during a visit to the facilities of Cub Elecparts Inc (為升電裝). Democratic Progressive Party (DPP) Legislator Chen Su-yueh (陳素月) and Chinese Nationalist Party (KMT) Legislator Hsieh Yi-fong (謝依鳳) also participated in the trip. Cub Elecparts has transitioned from the automotive industry to the defense industry, which is the top priority among the nation’s
UPGRADED MISSILE: The Chungshan Institute of Science and Technology is reportedly to conduct a live-fire test of the Hsiung Feng III anti-ship missile on Thursday next week The US Army is planning to build new facilities to boost explosives production and strengthen its supply chain, a move aimed at addressing munitions shortages and supporting obligations to partners including Taiwan, Ukraine and Israel, Defense News reported. The army has issued a sources sought notice for a proposed Center of Excellence at the Blue Grass Army Depot in Kentucky, the report said. The facility would serve as a hub within the US industrial base for the production of key military explosives, including research department explosives (RDX) and high melting explosives (HMX), while also supporting research and development of next-generation materials. The proposed
SOUTH KOREA DISPUTE: If Seoul continues to ignore its request, Taiwan would change South Korea’s designation on its arrival cards, the foreign ministry said If South Korea does not reply appropriately to a request to correct Taiwan’s name on its e-Arrival card system before March 31, the government would take corresponding measures to change how South Korea is labeled on the online Taiwan Arrival Card system, the Ministry of Foreign Affairs said yesterday. South Korea’s e-Arrival card system lists Taiwan as “China (Taiwan)” in the “point of departure” and “next destination” fields. Taipei has asked Seoul to change the wording. Since March 1, South Koreans who hold government-issued Alien Resident Certificates (ARC) have been identified as from “South Korea” rather than the “Republic of Korea,” the
RSS