China Trade Woes: Slowing Exports and Rising Challenges

In November, China's exports slowed while imports declined, pointing to potential weaknesses in trade. Exports grew 6.7%, less than expected, as imports dropped 3.9%. This led to a trade surplus spike, despite efforts by China to boost its economy post-pandemic. Tariff threats from the US add further complications.

In November, China's exports experienced a notable slowdown, with imports also declining, suggesting underlying challenges in trade dynamics. The latest customs data highlight a 6.7% growth in exports compared to the previous year, a considerable decrease from October's 12.7% rise. Analysts had projected a more optimistic figure of over 8% growth.

The decline of 3.9% in imports further underscores a waning demand from both industrial sectors and consumers. As exports outpaced imports, the trade surplus expanded to USD 97.4 billion, marking a significant economic indicator. This development coincided with China's official announcement of intentions to relax monetary policy to bolster its position as the world's second-largest economy.

Adding to the complexity of the current economic landscape, US President-elect Donald Trump has proposed substantial tariffs on Chinese imports, posing a potential threat to an area of China's economy that has remained robust amid weaknesses in the property market and fragile consumer spending patterns.

(With inputs from agencies.)