Published: Mon, January 14, 2019
Economy | By

Slump in Chinese exports fuels fears for global demand

Slump in Chinese exports fuels fears for global demand

China imported 30 percent more crude oil in December than a year earlier, Reuters reports, citing fresh customs data.

Chinese exports and imports fell last month, indicating U.S. tariffs are beginning to impact the world's number two economy.

Exports to the United States held up through late 2018 despite President Donald Trump's tariff hikes on Chinese goods. Russian Federation is now ranked as China's tenth biggest trade partner.

China's exports have fallen to their lowest point in two years while imports are also down. China's surplus is the U.S.'s trade deficit. Imports slumped 7.6 per cent and exports fell 4.4 per cent.

With policy easing unlikely to put a floor beneath domestic economic activity until the second half of this year, import growth is likely to remain subdued, they added.

The agency noted that previous year Russian imports of Chinese goods increased by 12 percent to $47.98 billion.

The customs administration will work to "improve the country's business environment and expand foreign order to keep employment, the financial sector, foreign trade, foreign investment" stable, Li said.

With US tariffs in place, the gloomy export picture has reinforced the need for Beijing to rely on its legion of consumers to grow its economy.

Last year's trade surplus was $352 billion, the figures showed.

Renewed fears over the strength of the global economy piled pressure on stock markets and commodity prices this morning after China revealed a sharp drop in exports.

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