Wednesday, 17th August, 2022
Wednesday, 17th August, 2022

China’s export growth lost steam in November: official

BEIJING, Dec 7, 2021 (BSS/AFP) – Export growth in China lost some steam in
November as holiday demand from abroad faded, official data showed Tuesday,
but demand for overseas fuel pushed up imports to spike above expectations.

Strong exports have helped to boost growth in the world’s second-largest
economy since mid-2020, with China containing domestic outbreaks through
tough lockdowns and mass testing — after the coronavirus was first detected
in the central city of Wuhan.

Despite recent power outages caused by emissions-reduction targets, the
surging price of coal, and supply shortages, factories kept the goods flowing
and the power crisis has been winding down.

But experts have warned that the export boom is likely to fade as the world
gradually returns to normalcy.

In November, exports rose 22 percent on-year, better than analysts expected
but below the 27.1 percent growth clocked in October, according to the latest
customs data.

A recent report by ING said Chinese exports likely slowed “given that most
orders for western holiday demand have been fulfilled”.

Imports, however, rose an unexpected 31.7 percent — well above the 21.5
percent increase tipped by a Bloomberg consensus poll.

“The surprisingly high number comes from contributions of coal, natural gas
and crude oil imports… it’s basically to meet the domestic demand for
energy,” said Zhaopeng Xing, senior China strategist at ANZ Research.

Given that China still has limited energy capacity and will need time to
build it up, energy-related imports will continue in the coming months, Xing
told AFP.

With most other countries opting for a strategy of living with Covid-19 and
reopening economies, demand for protective gear and work-from-home products
could shift to services, Nomura chief China economist Lu Ting earlier said.

On Tuesday, official data showed that China’s total trade surplus was $71.7
billion in November, down from $84.5 billion the month before.

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