CHINA'S exports grew at the slowest pace in nine months in November amid a worsening global economic climate, adding pressure on the world's second-largest economy to further relax policies favoring growth.

Exports in November expanded 13.8 percent from a year earlier, the weakest pace since February, to US$174.4 billion and easing from October's 15.9 percent, the General Administration of Customs said yesterday.

Imports increased 22.1 percent compared to last year, down from October's 28.7 percent rise, to US$159.9 billion.

The country's trade surplus narrowed to US$14.5 billion in November from US$17 billion in October and down 34.9 percent from a year earlier.

"New data reflect our call that trade will moderate further amid a worsening global economic climate, especially when the European Union, China's biggest trading partner, is still locked in a debt crisis," said Zhou Hao, an economist at Australia and New Zealand Banking Group Ltd. "However, the slowdown in growth wasn't as sharp as we had expected, indicating China has yet to meet its biggest economic challenge."

Xue Jun, an analyst at CITIC Securities Co, said China's efforts to diversify trade to more countries contributed to the better-than-expected data.

"While exports to Europe remain weak, overseas sales to emerging markets are increasing rapidly, helping to sustain growth," Xue said.

According to the Customs administration, bilateral trade with the EU increased 19.2 percent from a year earlier in the first 11 months, slower than China's overall trade growth of 23.6 percent. Trade with the United States rose an even weaker 16.9 percent.

In comparison, China's trade with other markets did very well amid the global debt crisis. Bilateral trade with South Africa surged 82.5 percent annually in the year to November while shipments with Russia, Brazil and Australia climbed 44 percent, 36.7 percent and 33.8 percent respectively.

Market watchers had expected dismal figures after a senior official at the Ministry of Commerce warned of a sharp slowdown in November's exports. Analysts also called for the government to relax monetary policies to support growth.

However, the central government hasn't indicated it will ease off on tight monetary polices even though inflation weakened to a 14-month low of 4.2 percent in November.

 

Source:shanghaidaily.com