Subscribe free to our newsletters via your
. Space Industry and Business News .




TRADE WARS
China April exports down 6.4% in new sign of weakness
By Fran WANG
Beijing (AFP) May 8, 2015


China's exports fell unexpectedly in April as imports posted their sixth straight monthly decrease, official data showed Friday, with analysts calling for more stimulus to bolster the world's second-largest economy.

The country's exports dropped 6.4 percent year-on-year in April to $176.3 billion, the customs authority said -- well below the median forecast of a 0.9 percent rise in a Bloomberg News poll of economists.

The fall was accompanied by a 16.2 percent drop in imports to $142.2 billion, the sixth monthly decline in a row, suggesting sustained weakness in domestic demand.

The export and import figures for April showed a trade surplus of $34.1 billion, Customs said, compared with $18.5 billion a year ago.

Analysts said the disappointing figures reflected persistent frailty in the Chinese economy and provided more evidence that further policy loosening is needed.

"The trade data indicate that current growth momentum remains soft, calling for more monetary policy easing," Nomura economist Zhao Yang said in a note.

China's gross domestic product (GDP) expanded by 7.4 percent in 2014, the lowest rate in nearly 25 years.

Growth slowed further to 7.0 percent in the January-March period, the worst quarterly result in six years and down from 7.3 percent in the final three months of 2014.

More recent data showed the downturn may have extended into the second quarter.

British bank HSBC's purchasing managers' index, which tracks activity in China's factories and workshops, recorded its worst contraction in a year in April as subdued domestic demand continued to weigh on growth, it said this week.

Chinese leaders have said they are ready to accept slower but more sustainable expansion, as they try to transform an investment-driven growth model to one in which consumers take centre stage.

But authorities have stepped up stimulus efforts since late last year in a bid to ensure the slowdown does not get out of hand.

The central People's Bank of China has cut interest rates twice since November and reduced two times the amount of cash banks must keep in reserve, along with other measures to inject liquidity into the market.

- 'Strong headwinds' -

April's trade figures followed a 15.0 percent year-on-year decrease in exports in March, and a 3.3 percent drop in January.

February overseas shipments increased by 48.3 percent, mainly due to seasonal distortion around the Lunar New Year holiday.

ANZ economists expected prolonged difficulties ahead for international commerce as other industry-related data remain weak.

"As the port throughput data remain soft, we continue to see strong headwinds in China's trade sector in the foreseeable future," they said in a report.

Authorities are expected to introduce incentives such as tax cuts and more interest rate reductions, ANZ said.

"It is likely that China needs to add targeted stimulus on both fiscal and industrial sectors."

Beijing cut its trade growth target for this year to about 6.0 percent, from the 7.5 percent goal set for last year.

Actual trade expanded 3.4 percent in 2014, the third consecutive time the annual target was missed.

Julian Evans-Pritchard, an economist with research firm Capital Economics, cautioned that unlike previous weakening in imports caused by falling commodity prices, April's contraction was "at least partly driven" by lower incoming volumes, suggesting "the ongoing slowdown in investment, particularly property, has further weighed on domestic demand".

But he was optimistic about the outlook for Chinese trade, citing likely stable demand in foreign markets and a recovery in international commodity prices.

"We expect negative export growth to prove short lived," he wrote in a note.

But while slowing investment growth will remain a drag, he said, import growth should begin to gradually recover as the price of many key commodities "appears to have bottomed out".


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


.


Related Links
Global Trade News






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








TRADE WARS
Germany's Siemens acknowledges China examination
Shanghai (AFP) May 5, 2015
German industrial giant Siemens confirmed that Chinese regulators are "looking into" the business model of its healthcare unit, but denied it was a corruption investigation. China's healthcare sector is widely considered to be riddled with graft, partly the result of doctors' low salaries and an opaque tendering system for drugs. Media reports said the State Administration for Industry & ... read more


TRADE WARS
Researchers match physical and virtual atomic friction experiments

See flower cells in 3-D - no electron microscopy required

Northwestern scientists develop first liquid nanolaser

Rubber from dandelions

TRADE WARS
French-Italian military communications satellite launched

Harris wins IDIQ contract for Rifleman Radio

U.S. Special Operations Command orders MUOS-capable radios

Thales supplying intercoms for Australian military vehicles

TRADE WARS
ILS And Dauria announce Proton/Angara dual launch services agreement

SpaceX to test 'eject-button' for astronauts

India to launch 6 more satellites in 2015-16

Arianespace to launch HellaSat-4/SGS-1 for Arabsat and KACST

TRADE WARS
Next Generation GPS System Faces Delays, Cost Overruns

Neuronal positioning system: A GPS to navigate the brain

NASA Goddard Team Sets High Flying Record with Use of GPS

China's satellite navigation system to expand coverage globally by 2020

TRADE WARS
France, India pledge swift conclusion to fighter jet deal

Boeing supplying P-9A training gear to U.S. Navy, Australia

NASA tests 10-engine electric airplane

India defence minister wants swift deal on French Rafale jets

TRADE WARS
Two-dimensional semiconductor comes clean

Defects in atomically thin semiconductor emit single photons

Researchers develop acoustically driven controls for smartphones

Printing silicon on paper, with lasers

TRADE WARS
Dull forest glow yields orbital tracking of photosynthesis

Technologies enable ambitious MMS mission

Nepal earthquake on the radar

Egyptian Space Authority Denies Losing Control of EgyptSat Two Satellite

TRADE WARS
Greenpeace says India office may close within a month

US-backed drug spraying triggers health fears in Colombia

Hungary orders clean-up of 'catastrophic' disused chemical plant

Chemical spill had 'no impact on health': Costa Rica




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.