BEIJING: China’s global trade both imports and exports have slipped dramatically pointing to an economy that is cooling off much faster than expected.
China’s exports tumbled 14.6 per cent in March, while imports registered another weak performance sliding 12.3 per cent for the month.
The readings indicate that China is being hit with weak demand both domestically and abroad.
ANZ’s Beijing-based economist Li-Gang Liu said the very weak import data suggested domestic demand has slowed further, possibly pointing to a below 7 per cent growth when the latest GDP figures are released on.
The weaker than expected import data follows an even heavier 20 per cent fall in February.
China’s export performance showed a sharp reversal from strong growth in February, with exports to key markets in the US, Europe and Japan falling by 8 per cent, 19 per cent and 25 per cent respectively.
Overall China’s trade surplus fell 95 per cent from $US60.6 billion in February to $US3.1 billion in March.
However Dr Liu pointed out that the still large trade surplus continues to support a relatively strong currency which increased the risk of importing deflation into China.
The Yuan fell on the news, while the Chinese stock market rose 1.5 per cent with the Shanghai Composite up 1.5 per cent to a seven-year high.
