China’s higher imports hint at rising domestic demand

BEIJING: China’s exports in November shrank for the fourth consecutive month, underscoring persistent pressures on manufacturers from the Sino-US war but growth in imports may be a sign that Beijing’s stimulus steps are helping to stoke demand.

The 17-month long trade dispute has heightened the risks of a global recession and fuelled speculation that China’s policymakers could unleash more stimulus as growth in the world’s second-largest economy cooled to nearly 30-year lows.

Overseas shipments fell 1.1% from a year earlier last month, customs data showed yesterday, compared with a 1.0% expansion tipped by a Reuters poll of analysts and a 0.9% decline in October.

Imports unexpectedly increased 0.3% from a year earlier, marking the first yearon-year growth since April and compared with a 1.8% drop forecast by economists.

The better-than-expected import data may point to firming domestic demand after factory activity showed surprising signs of improvement recently, although analysts have noted the recovery could be difficult to sustain amid trade risks.

China’s trade surplus for November stood at US$38.73 billion (RM161.1 billion), compared with an expected US$46.30 billion surplus in the poll and a US$42.81 billion surplus

Beijing and Washington are negotiating a first phase trade deal aimed at de-escalating a trade dispute but they continue to wrangle over key details.

US President Donald Trump said on Thursday trade talks with China are “moving right along,“striking an upbeat tone even as Chinese officials held fast to their line that existing tariffs must come off as part of an interim deal. Earlier in the week, though, Trump rattled global markets when he said a deal might have to wait until after the 2020 election.

China’s trade surplus with the United States for November stood at US$24.60 billion, according to Reuters calculations based on customs data, easing from the previous month’s surplus of US$26.45 billion. – Reuters