China’s trade surplus with the U.S. attained a record level of $42 billion in September.  Exports to the U.S. were 30 percent higher than in September 2020.  Imports from the U.S. rose by 17 percent with 30 percent less soybeans imported albeit at higher total value based on unit price. 

China is currently experiencing an energy crisis. Imports of coal and gas by China increased in September but crude oil declined.  China imported 22 percent more natural gas in September compared to the corresponding month in 2020 with a value of $5.2 billion. Coal imports increased by 76 percent from September 2020 to 32.9 million tons representing a three-fold increase in value to $3.9 billion.  Due to the sharp increase in the cost of thermal coal, utilities either shut down or reduced output of power resulting in brown-outs and black-outs. The Government exercising control over all aspects of the economy in China allowed the cost of electricity to increase in proportion to the cost of generation, restoring supply.  Mismanagement of energy policy has impacted production and added to the disruption in supply chains adversely affecting the U.S. and international markets.  Notwithstanding domestic problems from the consequences of interruption in power, China exported goods to the value of $305 billion in September representing a 28 percent increase over the corresponding month in 2020 and exceeding estimates.