China’s September Exports Rise 36.3%, Imports From Korea Up 94%, Leaving a Deficit With Korea

China’s September customs data, released on Oct. 14, show exports of $447.18 billion, up 36.3%, and imports of $313.65 billion, up 31.0%. Imports from South Korea reached $34.6 billion, nearly double a year earlier (+94.3%), leaving China with a deficit of about $14 billion in trade with Korea.

By the Editorial Desk

Exports up 36.3%, imports up 31.0%

China’s exports in September came to $447.18 billion, up 36.3% from a year earlier. That beat the 25.5% forecast in a Reuters poll and August’s 25.0%, and was the fastest growth since February (39.6%). Imports rose 31.0% to $313.65 billion, a faster pace than August’s 28.2%. The monthly trade surplus was $133.53 billion, and the cumulative surplus for January–September reached $938.11 billion.

$34.6 billion from Korea, a deficit for China

China’s imports from Korea in September were $34.64 billion, up 94.3%, while its exports to Korea were $20.60 billion, up 68.2%. Imports exceeded exports by about $14 billion, so China ran a deficit with Korea. For January–September, exports to Korea rose 39.1% and imports from Korea 75.4%, and total bilateral trade grew 59.3%. With imports from Korea at $32.16 billion in August (+108.1%), the figure has now topped $30 billion for two months running.

Sharp rise in integrated-circuit trade

By product, China’s exports of integrated circuits were $44.95 billion, up 136%, and imports were $71.72 billion, up 74.7%. Semiconductor demand and higher prices are cited as a backdrop to the rise in imports from Korea, but the reports we checked do not break down Korean imports by product, so volume and price effects cannot be separated. Rare-earth export volume was 4,269.8 tonnes, up 6.7%.

Business Checkpoints

Items that feed China’s electronics and IT production, such as semiconductors and electronic components, are directly affected by rising demand. Companies with customers in this area should review inventory and delivery schedules against changing order volumes.

With imports from Korea up sharply for two months in a row, customs volumes are rising too. Companies shipping parts and materials to China should have customs documents and proof of origin ready in advance. Note also that Korean figures (Ministry of Trade, Industry and Resources) and Chinese figures are compiled differently, in terms of freight and insurance and origin classification, so the numbers do not match; keep this in mind when comparing the two.

※ This article is based on data released by China’s General Administration of Customs and on Korean media reports.