Chinese Exports Grow, Imports weak

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Chinese Exports Grow, Imports weak

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China's export rose 13.4% in December compared with last year, while import growth slowed to 11.8%

10 January,2012 10:17 am

Over all, the Chinese trade surplus shrank to $155 billion in 2011, from $183 billion in 2010, as imports picked up and demand for Chinese goods in Europe and elsewhere softened. IHS Global Insight, an economic forecasting firm, said that while still sizable, the trade surplus was China’s lowest in three years. That could help China fend off pressure from the United States to allow its currency to appreciate faster.The trade figures were released just before the arrival of Treasury Secretary Timothy F. Geithner in Beijing. Mr. Geithner is hoping to persuade China to limit its purchases of Iranian oil and is also expected to discuss currency and trade issues, including disputes over steel, automobiles and chicken.The Treasury Department said last month that the United States would continue to push China on the exchange rate but stopped short of accusing China of manipulating its currency. The United States argues that despite slow appreciation, the renminbi remains undervalued to bolster Chinese exports. Some analysts predict that China will allow its currency, the renminbi, to strengthen by about 3 percent against the dollar this year.December’s export growth was only slightly behind that of the previous month, when exports rose 13.8 percent compared with the same period a year ago. But import growth of 11.8 percent represented a slowdown compared with the last three months. Imports rose 20.9 percent in September, 28.7 percent in October, and 22.1 percent in November.Analysts with IHS Global Insight called the decline in import growth “worrying,” and an indication of rapidly slowly domestic demand. “This will be of little help to a flagging global economy,” they said.Export growth held up well because of looser monetary conditions and rising demand for Chinese goods, analysts with ANZ said. “While exports to the United States moderated, shipments to Japan and the emerging economies remained reasonably steady,” a note from the bank said.