China January exports slump 6.6%

Photo by Reuters

BEIJING: China’s exports tumbled 6.6% year-on-year to 1.14 trillion yuan (around US$174 billion) in January, authorities said on Monday, as the struggling manufacturing sector remained a drag on the world’s second-largest economy.

Tremors in overseas markets and weakness in partner economies have weighed on the Asian giant, a main driver of the world’s economic growth, and the globe’s largest trader in goods.

Rock-bottom prices for commodities such as oil and the slowdown in infrastructure have hit China’s import values, while exports have been hurt by frail overseas demand, along with rising labour costs and the increasing competitiveness of neighbouring economies. 

Imports fell sharply 14.4% year-on-year to 738 billion yuan in January, Customs said, a worsening of the 4% decline in yuan terms the month before. The monthly trade surplus rose 12.2% to 406 billion yuan, compared with a 24.7% expansion in December.

Economists had forecast exports to fall 1.8% in dollar terms last month, according to Bloomberg news, and expected a 3.6% slide in imports, also in dollar terms.

The benchmark Shanghai index opened 2.84% lower on Monday, as Chinese investors returned from the week-long Lunar New Year holiday and responded to the rout in world markets last week.

China's economy grew 6.9% in 2015 - the lowest rate since 1990 - and is expected to slow further this year. - AFP