China’s exports gained, snapping a seven-month losing streak, as a cheaper yuan aided foreign purchasing. Imports jumped the most in two years.
Key Points
- Overseas shipments increased 0.1 percent in dollar terms from a year earlier in November, versus a 5 percent decline projected in a Bloomberg economist survey
- Imports rose 6.7 percent, versus a projected 1.9 percent decrease, leaving a $44.6 billion trade surplus, the customs administration said Thursday
Big Picture
The currency has fallen 10 percent against the dollar since a surprise devaluation in August 2015 while remaining stable recently against a basket of currencies. Exports stabilizing suggests demand remains intact for now as the world’s largest exporter faces potential headwinds and policy uncertainty as Donald Trump prepares to take office Jan. 20.
Economist Takeaways
“Better-than-expected trade data out of China today reflects both an uptick in global demand as well as the continued strength of the domestic economy,” said Julian Evans-Pritchard, an economist at Capital Economics in Singapore. “Despite today’s positive surprise, the medium-term outlook for Chinese trade remains challenging.”
“Recovering domestic demand has pushed up imports,” said Larry Hu, head of China economics at Macquarie Securities Ltd. in Hong Kong. Exports turning positive “reflects a wide improvement in the global economy this year.”
The Details
- Exports to the U.S., China’s largest trading partner, increased 8.1 percent
- Headline numbers were probably boosted by weaker data a year earlier, when exports in dollar terms dropped 4.3 percent and imports rose 2.3 percent after seasonal adjustment, customs officials said in a statement accompanying the data
