Economic Slowdown: China’s trade data highlights concerns

BEIJING: China on Saturday reported a sharp slowdown in exports in May compared to the previous month while imports unexpectedly dropped.

Overseas shipments rose just 1% to $182.8 billion last month, far lower than the 14.7% recorded in April, customs authorities said in a statement. Imports dropped 0.3% to $162.3 billion, said the statement, down from a rise of 16.8% in April and well below the economists’ median forecast of a 5% increase. Trade surplus stood at $20.4 billion last month widening marginally from the previous month. The disappointing performance was due to “a slowdown in the domestic economy, sluggish foreign demand, companies’ high costs, the appreciation in the Yuan’s real value and a worsening trade environment”, custom officials said.

It was also a result of a crackdown on misreporting by importers and exporters who may have overstated their business to seek to evade Chinese government controls on capital movements and channel funds into the country, he said.

Published in The Express Tribune, June 9^th, 2013.

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