Amid fear of after-effects of US duties, Chinese exports soar in September

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Amid fear of after-effects of US duties, Chinese exports soar in September

Following the levying of duties on Chinese exports by the United States of America, there was worry about the country's exports declining. However, in an unexpected defiance, the Chinese exports rose significantly for the month of September, according to a Reuters report.

The East-Asian country's exports rose to about 14.5% in September 2018 whereas in the month of August, the Chinese exports were placed at 9.8%. Given the increase in the exports, experts have speculated that the Chinese exporters may have shipped the products before the duties levied by the US came into enforcement.

In addition, these experts also cautioned that it wouldn't be prudent to think that the Chinese exports would continue to post such high figures in the days to come. The Reuters quoted Capital Economics' chief China economist Julian Evans-Pritchard in this regard.

Evans-Pritchard noted, "The big picture is the Chinese exports have so far held up well in the face of escalating trade tensions and cooling global growth, most likely thanks to the competitiveness boost provided by a weaker (Chinese Yuan).

With global growth likely to cool further in the coming quarters and US tariffs set to become more punishing, the recent resilience of exports is unlikely to be sustained." Meanwhile, with the face-off between the US and China showing no signs of abatement, the International Monetary Fund lowered its estimates of economic growth for both nations.

The USA's growth estimate was lowered to about 2.5% from IMF's initial assessment of 2.7% for 2019, while China's growth estimate was revised to 6.2% from IMF's initial estimate of 6.4% for 2019. USA levied duties on Chinese exports worth to about $200 billion.

In retaliation, China imposed duties on American exports up to $60 billion.