Investing.com – China reported a trade balance surplus of $26.62 billion for October, well narrower the $39.50 billion expected, while exports rose 6.9% and imports jumped 17.2%.
At the same time, January to October crude oil imports rose 11.8% year-on-year to 349 million metric tons, while October imports came in at 30.9 million metric tons.
ING Markets in Asia said the trade data will gather more eyes with Trump in China.
“There are opinions that a stronger CNY should hurt exports. However, we do not find evidence of this from data since 2013. We smooth the data by using three-month moving average and cannot confirm that a stronger CNY should dampen exports. The result seems to be robust to other specifications we have also tried,” ING said in a note to clients.
“Trump is in Asia, this may be the factor that would give China trade some hard time. For example, talks related to North Korea and anti-dumping. However, we believe that if there is any trade sanctions or similar threats that US put on China then China would retaliate either in the form of trade or imposing hurdles to US companies operating in China.”