The General Administration of Customs on October 8 released reports that China’s exports rose 15.6% YoY to USD217.28bn and imports rose 21.4% to USD183.27bn in October. The significant growth has beaten experts' forecasts conducted by Reuters. However, analysts still hold a pessimistic view towards future data as the US-China dispute shows no clue for easing. They also warned a possible sharp drop in early 2019 if no more progress would be made in the next trade meet which will happen later in November.
For the first ten months of this year, China's exports and imports rose 7.9% and 15.5% YoY, down from last October's 11.3% and 21.6% growths. The slowdown results from multiple aspects. The Chinese government blames mostly the US tariffs which cut the competitiveness of Chinese goods in the US market. The sign of cooling in the Chinese economy is another vital aspect to consider. Especially in this quarter, Chinese GDP growth reported the lowest level below 6.5%. The Chinese regulators have taken actions to stimulate the economy, mostly by various tax cuts. On October 30, Chinese finance minister announced new tax cuts for the country and a streamlining of the VAT system. On August 31, the NPC Standing Committee has agreed on the new individual income tax law.