BEIJING: China’s exports to the US and the rest of the world grew more than expected in October, official data showed Thursday, as its traders apparently rushed shipments across the Pacific ahead of higher tariffs.
Relations between the world’s top two economies have soured sharply this year as US President Donald Trump slapped roughly half of Chinese imports with higher taxes.
Top Chinese officials are currently in Washington, with hopes that those talks could pave the way for a breakthrough on trade later this month when Trump meets Chinese President Xi Jinping at the G20 summit in Argentina.
Still, in October exporters continued to hurry goods across the Pacific, with China’s exports to the US surging 13.2 percent from the same period last year, according to the data released by China’s customs administration.
“October’s surprisingly strong export performance seems to have been partly due to a continuous front-loading effect and is unlikely to be a long-term trend,” said Betty Wang, China economist at ANZ.
China’s trade surplus with the US fell to $31.8 billion in October, from a record $34.1 billion in September.
October marked the first full month of US tariffs on $200 billion of Chinese goods — but the tax rate is set to jump from 10 percent to 25 percent come January.
Trump has repeatedly boasted the US could not lose a trade war with China, but Beijing’s retaliatory tariffs on American goods have been more damaging so far.
China’s imports from the US fell 1.8 percent in October on-year, while its surplus with the US expanded to $258 billion for the first 10 months of the year.
Analysts estimate the upcoming meeting of the two heads of state will fail to resolve the friction.
“We do not expect the sideline meeting of Xi and Trump during the G20 would be positive,” said Iris Pang of ING Bank.
“We just hope that the meeting won’t create further damage to the trade relationship,” Pang told Bloomberg News.
China’s overall trade — what it buys and sells with all countries including the US — logged a $34 billion surplus for the month.
Exports jumped 15.6 percent for October on-year, beating the 11.7 percent forecast by Bloomberg News, while imports rose 21.4 percent on-year, well above the forecast 14.5 percent.
“While shipments to the US held up well, those to other parts of the world grew even faster,” said Louis Kuijs of Oxford Economics.
“Global demand may be holding up better than feared, while a weaker Chinese yuan is also helping the country’s exporters.”
Robust imports showed China’s economy remained stable despite posting 6.5 percent GDP growth in the third quarter — its slowest pace for nine years.
Beijing could be pulling up from its campaign to tackle mounting debt which weighed heavily on growth, analysts said.
“Robust imports, especially commodities, could be an indication of a rebound in infrastructure investment and a stabilization of the property market,” said ANZ’s Wang.
Despite the resilient trade data, analysts forecast the US-China feud will hit growth in coming months.
“Trade tensions will be a lingering concern for the global economy,” Wang said.
China’s exports hold up despite US tariffs
China’s exports hold up despite US tariffs
- China’s exports to the US surged 13.2 percent in October from the same period last year
- ‘Trade tensions will be a lingering concern for the global economy’
RLC Global Forum highlights role of Saudi youth in retail digital shift
RIYADH: Saudi Arabia’s young and highly digital population is reshaping how the Kingdom’s retail sector adopts new technologies and artificial intelligence, advancing faster than many global competitors, industry leaders told Arab News.
Speaking on the sidelines of the RLC Global Forum in Riyadh, executives told Arab News that the intersection of a youthful population and strong investment in AI is driving a shift in the industry’s priorities.
From understanding consumer behavior to leveraging the Kingdom’s growing status as a global AI leader, Saudi Arabia is becoming as a unique destination for the retail sector to thrive, learn, and evolve in the digital sphere.
Abdullah Al-Tamimi, CEO of commercial real estate company Hamat Holding, told Arab News that the firm is keen to analyze and understand consumer behavior, with a particular focus on the younger generation as a key part of that insight.
“Actually, it’s a big part of our day-to-day operation,” he said, adding that the company invests heavily in understanding customer needs and behavior and works to correct any missteps.
Al-Tamimi emphasized paying close attention to small details, noting that younger consumers are especially sensitive to the overall experience and “deserve that we work around the clock in order to improve it.”
He added that this focus “can be a competitive advantage for Saudi Arabia as well.”
Al-Tamimi said that as the younger generation grows accustomed to new technology shaping retail customer experiences, Hamat Holding is leveraging AI to enhance them further.
“We started a couple of initiatives improving digitalization,” he said, adding that the company sees digital tools as a way to enhance its work by automating day-to-day operations and allowing teams to focus on bigger-picture and more complex tasks.
While the firm has expanded its use of technology, he stressed it has not replaced human workers, emphasizing the continued importance of human capital for creativity and interaction. “AI is a big part of our strategy,” Al-Tamimi added.
Amit Keswani Manghnani, chief omnichannel and AI officer at luxury goods retailer and distributor Chalhoub Group, told Arab News that bridging a younger customer base with continuous digital development is key to advancing the Kingdom’s retail strategies.
On Saudi Arabia’s demographics, he said: “We look at 2030 as really building products which serve especially the younger population, which is growing and very digitally savvy.”
Manghnani underscored the unique characteristics of the Kingdom’s retail market as a tool for developing effective products and customer experiences.
“So it’s very digitally savvy, much more than in other markets,” he said, noting that e-commerce penetration is rising not only through online purchases but also via digital catalogs that drive in-store visits.
Manghnani said investment is focused on making products more digitally accessible and easier to use, while strengthening customer service to meet the expectations of what he described as a demanding but welcome consumer base. “Service excellence, digital — all these things together are how we are tapping into the younger population, which again is extremely savvy.”
Manghnani reinforced Al-Tamimi’s point that the Kingdom holds a competitive advantage, citing the speed at which its retail and technology industries are aligning.
“As a market, we’re tending to see the adoption of digital,” he said, referring to AI, data and other forms of digital interaction, adding that these tools are increasingly being combined.
He noted that this market is moving “much quicker than the other markets.”
The two-day RLC Global Forum brought together more than 2,000 global leaders, policymakers, and innovators from over 40 countries over the two-day event to define the next chapter of growth across retail, consumer, and lifestyle industries.
