China Exports in October 2023 points at slowing inflation!

Whilst China exports expressed in US dollar terms fell -6.4% YoY and came lower than market expectations, the situation appears more nuanced when considering exports expressed in quantities.


For example, with nearly 527 thousand units exported in October, China’s exports of vehicles came at record level for 8 consecutive months! Whilst pointing at weak demand in China, it also illustrates China’s competitive manufacturing sector and how it positively contributes to China’s apparent steel demand as well as for imports of iron ore & coking coal. Altogether, it suggests a win-win situation where China can export the deflation resulting from its real-estate crisis into areas plagued by runaway inflation.

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