(New York, 8 December 2017) China’s trade engine remained in high gear with a surprise export surge accompanied by further acceleration in imports that signals robust demand in the domestic economy.
Exports rose 12.3 percent in November in dollar terms, the customs administration said Friday, exceeding all economist estimates in a Bloomberg survey where the median estimate was for a 5.3 percent rise. Imports also beat projections with a 17.7 percent increase, widening the trade surplus to $40.2 billion.
“The robust global economy, both the developed and developing economies, has lifted China’s exports,” said Yao Shaohua, an economist at ABCI Securities Co. in Hong Kong. “Investment growth will slow slightly next year, weighing on imports growth.”
Demand for Chinese products has proven robust as growth in major trade partners remains intact, and imports are stabilizing as the economy outperforms this year. The official factory gauge unexpectedly rose to near a five-year high in November, despite campaigns to clean up the environment and the financial system. The government recently announced tariff reductions to help boost imports as the economy evolves to depend more on consumption.
“A return to double-digit growth in the November numbers is striking,” economists Tom Orlik and Fielding Chen wrote in a report on Friday. “A U.S. tax cut, especially if protectionist policies stay on hold, would add momentum on global demand.”
To read complete report Go To: China’s Double-Digit Trade Jump Pairs Global and Domestic Demand (Source: Bloomberg News)