China’s car and ship exports hit record despite slowing trade

CHINA’S exports of both cars and ships hit records in September even as broader shipments slowed, underscoring the rapid changes in the nation’s industry that are fuelling global trade tensions.

The firms shipped more than US$11.5 billion of vehicles last month, taking the total this year to almost US$88 billion, the customs administration said on Monday (Oct 14). The 464 ships sold overseas were worth more than US$4.6 billion, the most ever and more than double the amount the same month last year.

The sudden rise in exports of higher-value manufactured goods such as electric vehicles has caused rising concern in developed nations, with the European Union, Canada and the US all imposing tariffs on the autos. Other countries such as Turkey and Brazil have also imposed import levies to push Chinese firms to invest directly in their markets.

That surge has come as part of a broader rise in manufactured exports, with steelmakers and other firms shipping more overseas to make up for weak demand and falling prices in China. Steel exports this year total nearly 81 million tonnes, up 21 per cent from a year earlier.

China is mired in deflation and companies have also been cutting prices to boost exports, further undercutting overseas competitors. Overall export volumes have risen almost every month this year, while prices have been negative since May of last year. BLOOMBERG