China’s exports decline fastest since 2009

Analysts worry about the impact of Donald Trump’s policy against Beijing

Beijing, Jan. 13: Chinese exports fell more than expected in December, deepening concerns about the trade outlook for the world’s number-two economy as Donald Trump prepares to take Presidential office in the US. The export drop was the second annual decline in a row and the worst since the depths of the global crisis in 2009.

The disappointing figures come as the country tries to position itself as a leader of the global trade regime in anticipation of an American retreat under its proudly protectionist new leader. The world’s largest trader in goods, China’s performance affects partners from Australia to Zambia, which have been battered as its expansion has slowed to levels not seen in a quarter of a century.

“There remain some obstacles facing China’s foreign trade development,” customs spokesman Huang Songping told reporters at a news conference announcing the results, adding the international trading environment was “severe and complex”.

Exports slipped 6.1 per cent to $209.4 billion in December, Customs said, much worse than the four percent tipped in a survey by Bloomberg News.

Imports were essentially

in line with expectations, rising 3.1 per cent to $168.6 billion, while the trade surplus dropped nearly a third year-on-year to $40.8 billion. Figures for the whole year showed an even sharper decline, with exports down 7.7 per cent to $2.1 trillion, and imports dropping 5.5 per cent to $1.59 trillion.

It had earlier released the figures in yuan terms, showing a two per cent drop in exports last year.

Next week sees the release of economic growth data for the whole year. On Monday the country’s top economic planner Xu Shaoshi said he expected to see growth of about 6.7 per cent, matching forecasts and government targets but marking the worst result in more than a quarter of a century.

The yuan’s recent slide against the dollar to eightyear lows helped lift exports in November, but the outlook for this year is shaky after Mr Trump threatened to label China a currency manipulator and slap punitive tariffs on its goods.

2017 offers more downside risks as Mr Trump has appointed hardliners to handle trade policy. His pick of outspoken China critic Peter Navarro to head the US National Trade Council has alarmed the Chinese administration. — AFP

CHINA’S performance affects partners from Australia to Zambia, which have been battered as its expansion has slowed to levels not seen in a quarter of a century.