Arab Today, arab today china exports imports slump in january
Last Updated : GMT 21:17:01
Arab Today, arab today
Arab Today, arab today

China exports, imports slump in January

Arab Today, arab today

Arab Today, arab today China exports, imports slump in January

China's economy grew 6.9% in 2015
Beijing - AFP

Chinese trade slumped in January, authorities said Monday, as both exports and imports tumbled with feeble domestic and global demand dragging on the world's second-largest economy.

Exports dropped 11.2 percent year-on-year to $177.5 billion in dollar terms, Customs said, while imports plummeted 18.8 percent to $114.2 billion.

Tremors in overseas markets and weakness in partner economies have weighed on the Asian giant, a main driver of the world's economic growth, and the globe's largest trader in goods.

Rock-bottom prices for commodities such as oil and slowing growth in infrastructure spending have hit China's import values, while exports have been hurt by frail overseas demand, along with rising labour costs and the increasing competitiveness of rival economies.

"We believe the slump in trade growth mainly reflects weakening investment demand, possibly from weaker property investment and measures to reduce overcapacity," wrote Nomura analyst Zhao Yang.
Imports were hammered, falling in both volume and value terms, which a BofA Merrill Lynch research report said was "due to weakness in domestic demand and further downward adjustments in commodity prices".

The figures were far worse than expected, with economists forecasting a 1.8 percent fall in exports in a Bloomberg News survey, and a 3.6 percent slide in imports.

"The sharp drop of trade in January was a reflection of weak external demand," ANZ analysts wrote in a note, citing feebleness in trade partners Korea and Taiwan, although they added seasonal factors may have been an issue.

China's economy grew 6.9 percent in 2015 -- the lowest rate since 1990 -- and is expected to slow further this year, with the darkening perspective a contributory factor to plunges in global stock markets in recent weeks.

China's leaders are looking to retool the economy to one focused more on consumer spending, but the BofA Merrill Lynch report said the lack of investment in fixed assets -- such as the big-ticket infrastructure projects that long fuelled China's growth -- would drag on imports.

"Given the dimmer global economic outlook, China's export growth is likely to remain constrained by lacklustre external demand," it added.

- Happy new year? -
The export figures were sharply lower than the 1.4 percent slide in December, when imports had declined 7.6 percent.

The monthly trade surplus reached a new record in dollar terms at $63.3 billion.

Despite the worsening economic environment, the record surplus gives Chinese officials some breathing room to cope with the floods of cash that have flowed out of the country in recent months on expectations of further weakness in the yuan, also known as the renminbi (RMB).

The large positive trade balance "should help offset some of the capital outflow and alleviate some depreciation pressure on the RMB", said the ANZ analysts.

Capital outflow from China was nearly $160 billion in December alone, according to Bloomberg Intelligence.   
Over the weekend China's central bank chief blamed foreign speculators in part for volatility in the yuan currency and said there was no further basis for depreciation.

"China has the world's largest foreign exchange reserves," People's Bank of China governor Zhou Xiaochuan said, according to a transcript of the interview posted on the bank's website Saturday.

On Monday the yuan surged by the most since authorities stopped pegging it to the dollar more than a decade ago, according to Bloomberg News.

“RMB depreciation has failed to lift China's export growth so far,” wrote researchers with China International Capital Corporation, adding that authorities should make clear their plans for the currency.

The benchmark Shanghai index was down 1.57 percent at the noon break Monday, as Chinese investors returned from the week-long Lunar New Year holiday and responded to the rout in world markets last week.

While the trade figures were shakier than expected, Julian Evans-Pritchard of Capital Economics said in a research note that "things may not be quite as bad as they look" due to distortions in the data resulting from the shifting Lunar New Year holiday and capital flows.

Seasonal volatility meant it was "arguably too early to jump to conclusions" before the February figures became available, he said.

Customs earlier gave the figures in yuan terms, which showed exports down 6.6 percent, imports falling 14.4 percent, and a trade surplus of 12.2 percent.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china exports imports slump in january Arab Today, arab today china exports imports slump in january

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china exports imports slump in january Arab Today, arab today china exports imports slump in january

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Malaysia Airlines picks new CEO

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 09:56 2017 Friday ,20 October

Privacy Groups Warn of Perils

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday