The volume of China’s foreign trade continued to fall in December, but at a much slower pace than expected. Exporters of the country reported better results than most of its regional rivals such as Taiwan and South Korea due to the sharp depreciation of the yuan. This, however, raises fears of currency wars between export-oriented Asian economies, writes Reuters.
According to official statistics, exports of the second largest economy in the world has declined by 1.4% yoy last month. However, this is significantly below forecasts for a fall of 8% and in November reported a decline of 6.8%.
December was the 14th consecutive month of decline in imports, but the contraction of 7.6 percent was also less than expected. Economists had expected a decline of 11.5% after falling 8.7% in December. Better results due to lower commodity prices, which stimulated the Chinese producers to fill their stocks of oil, iron ore and other materials. Imports of crude oil reached a record high, while copper supplies were the second highest in history.
The trade surplus reached 60.09 billion. Dollars against 54.1 billion. For the previous month. “Another solid trade surplus provides a buffer for the central bank against the backdrop of increased capital flight,” said Daniel Martin, an economist at Capital Economics. “Trade Statistics supports the view that despite the turbulence of the Chinese capital markets into the real economy there is a strong deterioration in recent months,” he says.