China’s Novem­ber ex­port, im­port growth down

Iran Daily - - Tse & Global Economy -

China’s ex­ports in­creased far less than ex­pected in Novem­ber, ap­par­ently in­di­cat­ing that slow­ing global de­mand out­weighed any gains from a rush to ship goods to the United States ahead of a now-post­poned Jan. 1 in­crease in Wash­ing­ton’s im­port tar­iffs.

Im­port growth also fall sharply in Novem­ber to the slow­est pace since Oc­to­ber 2016, which sig­nals con­tin­u­ing weak­ness in do­mes­tic de­mand and could prompt Chi­nese pol­i­cy­mak­ers to in­crease ef­forts to lift it to aid the slow­ing econ­omy, Reuters wrote.

The Novem­ber head­line trade num­bers came out less than a week after pres­i­dents Don­ald Trump and Xi Jin­ping agreed to a 90-day truce de­lay­ing the planned Jan. 1 US hike of tar­iffs to 25 per­cent from 10 per­cent on $200 bil­lion of Chi­nese goods while they ne­go­ti­ate a trade deal.

Novem­ber ex­ports rose 5.4 per­cent from a year ear­lier, Chi­nese cus­toms data showed on Satur­day, the weak­est per­for­mance since a three per­cent con­trac­tion in March.

Ex­ports had risen 15.6 per­cent in Oc­to­ber from a year ear­lier, and a Reuters poll of 26 econ­o­mists had fore­cast Novem­ber ship­ments from the world’s largest ex­porter would in­crease 10 per­cent.

Growth in im­ports for Novem­ber slowed sharply to 3.0 per­cent from a 21.4 jump in Oc­to­ber, and far missed an­a­lysts’ fore­cast of 14.5 per­cent.

Weak­ened ship­ments

This year, China’s over­all ex­port growth has been stronger than ex­pected in al­most ev­ery month. Many econ­o­mists at­trib­uted strength in re­cent months to front­load­ing of car­goes to the United States in an­tic­i­pa­tion of even higher tar­iffs.

Ship­ments of Chi­nese goods on an ear­lier US tar­iff list tar­get­ing $50 bil­lion of prod­ucts have al­ready weak­ened sharply, but that has been off­set by a rush of ship­ments on a later list af­fect­ing the $200 bil­lion, ac­cord­ing to an­a­lysts from Cap­i­tal Eco­nom­ics.

Also, the Chi­nese yuan has weak­ened more than five per­cent against the dol­lar so far this year, help­ing to make Chi­nese prod­ucts more com­pet­i­tive abroad.

How­ever, a weak­en­ing global de­mand es­pe­cially those from Ja­pan and Europe might have cast shadow on the ex­port en­gine in Novem­ber.

China’s trade sur­plus with the United States was $35.55 bil­lion in Novem­ber, a record high and com­pared with $31.78 bil­lion in the pre­ced­ing month.

For trade with all coun­tries, China’s sur­plus was $44.74 bil­lion for Novem­ber, com­pared with fore­casts of $34 bil­lion and Oc­to­ber’s sur­plus of $34.02 bil­lion.

CAR­LOS BARRIA/REUTERS

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