November sees surge in China's trade figures
By Wang Yanlin |
December 11, 2010, Saturday
|
Print Edition
Print Edition
CHINA'S exports and imports jumped strongly in November, with vibrant domestic demand helping imports grow and reducing the trade surplus.
Exports expanded 34.9 percent from a year earlier last month to US$153.3 billion, up from the increase of 22.9 percent in October, the General Administration of Customs said yesterday.
Imports climbed 37.7 percent to US$130.4 billion, beating October's 25.3 percent.
November's trade surplus was US$22.9 billion, down from US$27.1 billion a month earlier.
"The strong growth showed a solid economic recovery in China despite increasing uncertainties in Europe and the United States," said Xue Jun, an analyst at CITIC Securities Co. "However, the authorities should still keep a close eye on external situations, and the crisis in Europe, affecting Greece and Ireland, may spread to more countries and disturb China's exports."
Another issue is the trade surplus, Xue said. Although it retreated from a record-breaking level in October, the pressure exerted by developed countries for a stronger yuan was unlikely to abate.
John Kerry, chairman of the US Senate's foreign relations committee, was reported as saying that Congress was growing impatient with China holding down the yuan and could impose legislation "with teeth" next year.
The Chinese currency has strengthened by 2.5 percent against the dollar since the People's Bank of China pledged on June 19 to increase exchange rate flexibility. But the pace of appreciation slowed in the past two months.
Excessive yuan appreciation
China has been trying hard to address its trade imbalance through increasing imports, instead of the shock therapy of excessive yuan appreciation. The growth of imports has been faster than exports for two consecutive months.
The higher-than-expected exports were a result of "seasonal factors," Beijing-based Huarong Securities analyst Xiao Bo told Xinhua news agency yesterday, referring to the increase in orders ahead of foreign countries' shopping seasons.
But exports face a gloomy outlook next year, with increased pressure from the appreciation of the yuan and trade frictions, said Zhang Yansheng, a researcher at the National Development and Reform Commission.
The rising cost of labor and raw materials and trade protectionism will further squeeze Chinese exporters' profit margins, Zhang told Xinhua.
Xiao expects export growth to fall in early 2011 as imports increase at a steady pace, which will further shrink the nation's trade surplus.
UBS Securities economist Wang Tao expects Chinese exports to climb 29 percent year on year this year but year-on-year growth to slow to 15.5 percent in 2011.
According to customs statistics, in six of the first 11 months of this year, imports growth outpaced that of exports.
Such a situation will become normal in the future as China strives to restructure its economy by weaning itself off its reliance on exports and boosting domestic demand, said Zuo Xiaolei, Galaxy Securities' chief economist.
China's foreign trade totaled US$2.68 trillion in the first 11 months of the year, up 36.3 percent year on year, the GAC said.
The customs said foreign-invested companies were a major factor in the surplus. They exported US$779.1 billion worth of goods in the first 11 months, but only imported US$666.6 billion.
The European Union remained China's largest trading partner, with EU-China trade increasing 33.1 percent year-on-year in the first 11 months to US$433.88 billion.
China's trade with the US rose 30.2 percent year-on-year to US$346.89 billion in the January-November period while China-Japan trade jumped 31.7 percent to US$267.79 billion.
Shanghai's trade surged 35 percent to US$333.3 billion in the first 11 months.
Exports expanded 34.9 percent from a year earlier last month to US$153.3 billion, up from the increase of 22.9 percent in October, the General Administration of Customs said yesterday.
Imports climbed 37.7 percent to US$130.4 billion, beating October's 25.3 percent.
November's trade surplus was US$22.9 billion, down from US$27.1 billion a month earlier.
"The strong growth showed a solid economic recovery in China despite increasing uncertainties in Europe and the United States," said Xue Jun, an analyst at CITIC Securities Co. "However, the authorities should still keep a close eye on external situations, and the crisis in Europe, affecting Greece and Ireland, may spread to more countries and disturb China's exports."
Another issue is the trade surplus, Xue said. Although it retreated from a record-breaking level in October, the pressure exerted by developed countries for a stronger yuan was unlikely to abate.
John Kerry, chairman of the US Senate's foreign relations committee, was reported as saying that Congress was growing impatient with China holding down the yuan and could impose legislation "with teeth" next year.
The Chinese currency has strengthened by 2.5 percent against the dollar since the People's Bank of China pledged on June 19 to increase exchange rate flexibility. But the pace of appreciation slowed in the past two months.
Excessive yuan appreciation
China has been trying hard to address its trade imbalance through increasing imports, instead of the shock therapy of excessive yuan appreciation. The growth of imports has been faster than exports for two consecutive months.
The higher-than-expected exports were a result of "seasonal factors," Beijing-based Huarong Securities analyst Xiao Bo told Xinhua news agency yesterday, referring to the increase in orders ahead of foreign countries' shopping seasons.
But exports face a gloomy outlook next year, with increased pressure from the appreciation of the yuan and trade frictions, said Zhang Yansheng, a researcher at the National Development and Reform Commission.
The rising cost of labor and raw materials and trade protectionism will further squeeze Chinese exporters' profit margins, Zhang told Xinhua.
Xiao expects export growth to fall in early 2011 as imports increase at a steady pace, which will further shrink the nation's trade surplus.
UBS Securities economist Wang Tao expects Chinese exports to climb 29 percent year on year this year but year-on-year growth to slow to 15.5 percent in 2011.
According to customs statistics, in six of the first 11 months of this year, imports growth outpaced that of exports.
Such a situation will become normal in the future as China strives to restructure its economy by weaning itself off its reliance on exports and boosting domestic demand, said Zuo Xiaolei, Galaxy Securities' chief economist.
China's foreign trade totaled US$2.68 trillion in the first 11 months of the year, up 36.3 percent year on year, the GAC said.
The customs said foreign-invested companies were a major factor in the surplus. They exported US$779.1 billion worth of goods in the first 11 months, but only imported US$666.6 billion.
The European Union remained China's largest trading partner, with EU-China trade increasing 33.1 percent year-on-year in the first 11 months to US$433.88 billion.
China's trade with the US rose 30.2 percent year-on-year to US$346.89 billion in the January-November period while China-Japan trade jumped 31.7 percent to US$267.79 billion.
Shanghai's trade surged 35 percent to US$333.3 billion in the first 11 months.
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