As global trade figures fall owing to the worldwide slowdown, China has emerged as the major beneficiary of consumers and businesses seeking cheaper goods. This has been reflected by it leapfrogging Germany to emerge as the world’s biggest exporter as Chinese factories engage in aggressive cost slashing to reduce the price of their goods in foreign markets. China’s position has also been bolstered by positive reports that the decline in export trade was not as bad as initially feared.

Having earlier forecasted a 21% fall in exports year-on-year in September, the General Administration of Customs revealed that actual figures showed a better-than-expected fall of just 15.2% year-on-year in the month concerned. The slower rate of decline has been welcomed by observers as a sign that the world’s third largest economy is picking up pace and more importantly as an indication that world trade is showing signs of improvement.

Further optimism has been fuelled by signs that exports rose by 6.3% month-on-month from August to September. This has led to forecasts that year-on-year trade will show a positive trend as soon as November or December of this year.