China’s export sector is showing unexpected strength despite rising trade tensions with the US. This gives Beijing more leverage in the ongoing tariff battle.

Exports surged 8.3% in September from a year earlier, surpassing expectations of 6.6% and marking a faster pace than August. Imports also rose 7.4%, much higher than forecast, leaving a trade surplus of $90.5 billion.

The steady demand from non-US markets helps Chinese exporters mitigate the impact of potential new tariffs. Furthermore, it provides support to an economy still grappling with weak housing demand and deflationary pressures.

China will release its third-quarter economic data on 20th October. Analysts expect slower growth than in the first half of the year. However, strong trade performance so far keeps China on track to meet its 5% annual growth target.

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