China December exports unexpectedly drop

Donald Trump's trade war hits Chinese exports

China December exports unexpectedly drop

For all of 2018, soybeans, the second largest imports from the USA, fell for the first time since 2011.

But the buying fell off a year ago after China imposed a 25 percent retaliatory tariff on the commodity in the summer. Imports of American goods rose just 0.7 percent over 2017.

The country's commerce minister told state media on Friday that China will work to straighten out trade frictions with the USA this year.

The country's commerce minister told state media on Friday that China will work to straighten out trade frictions with the USA this year.

In a sign of the world economy reaching a tipping point, official figures showed that Chinese exports dropped by 4.4% in December, in the largest fall since 2016, on the back of faltering demand in most of its key markets.

China's politically sensitive trade surplus with the United States surged to a record $323.3 billion in 2018 as a tariff battle with Washington intensified.

The trade slowdown sent Chinese stocks lower on Monday.

"Beijing will perhaps be more eager to strike a trade deal with the USA. policymakers will need to take more aggressive measures to stabilise GDP growth", Lu wrote in a note.

On a global level, China's exports have grown by 9.9 percent a year ago, but the Asian country also marked a 15.8 percent growth in imports.

The customs administration will work to "improve the country's business environment and expand foreign trade.in order to keep employment, the financial sector, foreign trade, foreign investment" stable, Li said, adding there are some "hidden concerns" and "uncertain external factors" for development.

"The export growth print also suggests that the recent strength of the yuan might be short-lived; Beijing will perhaps be more eager to strike a trade deal with the United States; and that policymakers will need to take more aggressive measures to stabilise GDP growth".

But a slew of bad data has added to concerns about China's economy, which is expected to have grown around 6.5 percent in 2018, down from 6.9 percent in 2017 and at its weakest rate in nearly three decades.

Chinese exporters also face pressure from cooling consumer demand in other global markets.

China's exports unexpectedly fell the most in two years in December, while imports also contracted, pointing to further weakness in the world's second-largest economy in 2019 and deteriorating global demand.

Altre Notizie