Chinese exports are slowing down and its trade surplus is shrinking,newly released figures show.China's export growth fell to 13.8% in November-the least growth since December 2009.Its trade surplus dropped to 14.5 billion dollars,down from 17 billion in October and below the estimate. This is a result of slowing demand from China's European trading partners because of the current debt crisis,as well as a hesitant U.S. consumer from the weak employment picture.
China is observing its 10th anniversary of joining the World Trade Organisation.President Hu Jintao said China will not deliberately pursue a trade surplus.China has fulfilled its promises to the World Trade Organisation.We will work hard for a balance of payments.China has some unbalanced and unsustainable elements that have to be improved,Mr.Hu admitted,responding to European and U.S. criticism.
As for the slowdown in export growth,Chinese officials said China may continue cutting bank reserve requirements in order to stimulate growth by encouraging lending.China must keep growing at a robust pace to provide jobs for its rapidly urbanising population.
A slowdown in China could have negative implications for the many large U.S. multinational corporations,such as Ford Motor,General Motors,General Electric and Wal-Mart,who rely on China for a portion of their own growth now.A deterioration in business conditions in China may hinder the U.S. economy in consequence of globalism.
iShares Trust FTSE/Xinhua China 25 index(FXI)
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