China’s January Foreign Trade up 19.6% YoY

China’s foreign trade totaled RMB2.18 trillion in January 2017, up 19.6% from a year earlier, according to the General Administration of Customs of China (GAC). Within that, exports grew 15.9% YoY to RMB1.27 trillion, and imports increased 25.2% YoY to RMB911.17 billion. The trade surplus shrank 2.7% YoY to RMB354.53 billion.
By trade mode, general trade for January grew 19.9% YoY to RMB1.25 trillion; that is 57.3% of the nation’s total foreign trade. General trade exports improved 12.7% YoY to RMB708.48 billion, while imports reached RMB538.77 billion, soaring 30.8% YoY.
In the same month, processing-trade foreign trade generated total RMB586.13 billion, increasing 11.6% YoY and accounting for 26.9% of the total. More specifically, exports rose 14.6% YoY to RMB390.82 billion, while imports rose 5.9% YoY to RMB195.31 billion.
Further, foreign trade under special customs supervision made up 10.8% of China’s total foreign trade, amounting to RMB234.4 billion, rising 33.4% YoY. Both exports and imports in this mode increased in January, reaching RMB73.77 billion (up 12.1% YoY) and RMB160.63 billion (up 46.2% YoY), respectively.
The EU is the largest trading partner of China, followed by the US, ASEAN and Japan.
* In January, foreign trade between China and the EU grew 14.1% YoY to RMB325.56 billion, 15% of China’s total foreign trade. More specifically, exports were up 13.6% YoY, reaching RMB211.64 billion, and imports rose 15.2% YoY, amounting to RMB113.92 billion, expanding China’s EU trade surplus 11.8% YoY, to RMB97.72 billion.
* Foreign trade with the US reached RMB320.07 billion, growing 21.9% YoY. That is 14.7% of China’s total foreign trade. Exports increased 17.2% YoY to RMB233.98 billion, imports surged 36.7% YoY to RMB86.09 billion, and China’s US trade surplus expanded 8.2% YoY, to RMB147.89 billion.
* ASEAN was responsible for 12.3% or RMB266.84 billion (up 18.8% YoY) of China’s total foreign trade, with exports growing 13.7% YoY to RMB154.64 billion, imports going up 26.6% YoY to RMB112.2 billion, while the trade surplus with ASEAN countries shrank 10.4% YoY, to RMB42.44 billion.
* China-Japan trade gained 18.4% YoY to reach RMB155.03 billion, accounting for 7.1% of China’s total foreign trade. Exports rose 18% YoY to RMB84.93 billion, imports grew 18.8% YoY to RMB70.1 billion, and the trade surplus with Japan expanded 14.4% YoY, to RMB14.83 billion.

The private, foreign-funded and state-owned sectors all saw growth in foreign trade.

* Foreign trade by private firms for January was up 21.3% YoY to RMB861.74 billion, constituting 39.6% of China’s total foreign trade. Within that, exports amounted to RMB612.38 billion, an increase of 18.9% YoY, making up 48.4% of the nation’s total exports; imports grew 27.9% YoY to RMB249.36 billion, or 27.4% of the total imports.
* Foreign-funded enterprises generated foreign trade of RMB915.57 billion, up 13% YoY, 42.1% of China’s total foreign trade. Exports rose 11.8% YoY to RMB511.22 billion, or 40.4% of China’s total exports. Imports grew 14.5% YoY to RMB404.35 billion, 44.4% of the total imports.
* Foreign trade by state-owned enterprises was 18% of China’s total foreign trade, totaling RMB392.85 billion, with the value shooting up 36.7% YoY. Exports increased 19.1% YoY to RMB141.11 billion, accounting for 11.1% of all exports. Imports reached RMB251.74 billion, soaring 48.9% YoY, and constituting 27.6% of the total imports.

Exports of electromechanical and traditional labor-intensive products increased.

* Exports of China’s electromechanical products in January grew 16.6% YoY to RMB709.57 billion, making up 56.1% of the nation’s total exports.
* In the same month, exports of clothing increased 9.5% YoY to RMB99.27 billion, exports of textiles rose 11.2% YoY to RMB66.41 billion, exports of footwear grew 16.8% YoY to RMB35.79 billion, exports of furniture gained 4.1% YoY to RMB32.45 billion, exports of plastic products improved 20.5% YoY to RMB23.36 billion, exports of suitcases expanded 22.1% YoY to RMB17.49 billion, and exports of toys exploded 53.4% YoY to RMB12.11 billion. Combined exports of these seven varieties of products expanded 13% YoY to RMB286.88 billion, or 22.7% of China’s total exports.
* Export of fertilizers plummeted 51.3% YoY to 1.21 million tons, and that of steel decreased 23.2% YoY to 7.42 million tons in January. Further, China exported 70 000 vehicles in the month, jumping up 65.7% YoY.

Import volume and import prices of bulk commodities both went up.

* In January, China imported 92 million tons (up 12% YoY) of iron ore at an average price of RMB524.9/t (up 81.3% YoY), 34.03 million tons (up 27.5% YoY) of crude oil, 24.91 million tons (up 64.4% YoY) of coal, 2.6 million tons (down 2.2% YoY) of oil products, 2.21 million tons (up 10.2% YoY) of primary-shape plastics, 1.09 million tons (up 17.7% YoY) of steel, and 380 000 tons (down 12.7% YoY) of forged copper and copper products.
* China imported 80 000 vehicles in January, increasing 29.1% from a year earlier.
China’s Export Leading Indicator for January reached 39, up 1.6 points from December 2016, according to GAC. This may alleviate pressure on exporters at the beginning of Q2 2017.