China's exports, imports weaken

11 Dec, 2011

China's exports slowed in November on slack demand in the US and European markets, as its overall trade surplus plunged 35 percent from a year earlier to $14.5 billion. Customs data released Saturday show exports rose 13.8 percent to $174.5 billion, a decline from 15.9 percent growth in October. Imports gained 22.1 percent to $159.9 billion, down from the previous month's 28.7 percent rise.
China's monthly trade surplus with the 27-nation European Union, its biggest export market, narrowed to $11.8 billion from $13 billion in October as countries that use the euro common currency struggled to contain their sovereign debt crisis. The touchy trade surplus with the United States also narrowed slightly from the month before to US $19.45 billion in November, as persistent high US unemployment sapped consumer demand.
The latest trade data reflect the relative strength of China's economy, which expanded by 9.1 percent in the three months that ended in September, while Europe's debt crisis and high US unemployment hurt demand for Chinese goods. Other economies are looking to China to help drive global demand, though its high trade surplus means fewer of the gains are shared with other countries. China's import strength is a boost to exporters of iron ore and other commodities such as Australia and Brazil, Asian suppliers of industrial components, and Western producers of factory equipment and consumer goods.
China's trade surpluses with its major Western export markets often are larger than its global surplus because it runs large deficits with suppliers of oil and other raw materials. Export growth has fallen steadily since hitting a peak of nearly 36 percent in March.

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