Some of the key sectors of China's exports showed robust growth in October amid the global economic turmoil and the credit freeze in the US. We feel their solid growth is a further indication that whilst slowing, the economy is not collapsing as the bears have suggested. Our research has shown that Asian exports have averaged 14.4% growth in the past four US recessions, so this should not be totally surprising.
 
Only the major segment's headline numbers are out so far for October, here we look at a few of them:
 
Mechanical and electrical products grew at 17.1% in October. Making up 57.6% of China's exports in the first 10 months of the year, they slowed from their 19.2% growth in both August and September. However, their share of China's exports increased, from 55.3% in August, to 57.5% in September and 59.3% for October. The segment includes electric and electronic products, machinery, transport equipment and metal products.
 
A second large sector, hi-tech products, also remained robust in October, growing at 19.1% compared with 22.6% in September. The sector, which includes computer and telecoms equipment and electronics, made up 29.2% of China's exports in the 10 months to October. It may include some overlap with the mechanical and electrical sector.
    
Textile exports in October grew at 12.5% after five months of sub-10% growth or decline. This acceleration comes largely on a rebound in garment exports to 11.5% growth after falling 1% and 3.2% in August and September respectively. Garments make up about two thirds of textile exports. The other section, textiles, grew at 14.3% in October up on September's 13.9% growth. The segment comprised 12.8% of China's exports in the first 10 months.
 
Tom Gurney
Research-Works