China’s exports posted a surprise growth in November, which was largely due to the low base of comparison, while imports dropped unexpectedly suggesting that overall trade remains sluggish. <\/p>\n
Data released by the Customs Office showed that exports increased 0.5 percent from a year ago in November, confounding expectations for a decline of 1.1 percent.<\/p>\n
This followed a sharp 6.4 percent decrease in October. Moreover, the increase was the first in seven months.<\/p>\n
On the other hand, imports registered a 0.6 percent decline, in contrast to the 3.3 percent growth forecast. In October, imports had increased 3.0 percent.<\/p>\n
Consequently, the trade surplus rose to around $68.4 billion from $56.5 billion a month ago. The surplus was forecast to rise to $58 billion. <\/p>\n
Exports to the US advanced more than 7.0 percent but shipments to the EU decreased 14.5 percent.<\/p>\n
Capital Economics economists said the recent strength in exports was driven by exporters slashing prices to gain market share, which is not sustainable. <\/p>\n
Without the support of price cuts, exports are unlikely to defy the slowdown in economic growth among major trading partners, they noted.<\/p>\n
However, imports are likely to hold up better in the near term, economists observed. <\/p>\n
Earlier this week, Moody’s downgraded China’s sovereign rating outlook to ‘negative’ from ‘stable’ and retained its credit ratings. <\/p>\n