China's November trade softens unexpectedly as global economy slackens

CHINA reported weaker-than-expected November trade data, indicating external demand for Chinese goods remains subdued, reports the Wall Street Journal.

Exports increased 2.9 per cent year-on-year in November, much lower than growth of 11.6 per cent in October and economists' forecast of 9.6 per cent.

Imports remained largely unchanged from a year ago, compared with a forecasted increase of 1.9 per cent. The overall trade surplus slumped to US$19.6 billion in the month from $32 billion in October.

"Looking ahead, China may have to rely more on investment to stimulate the economy if the US situation worsens," said HSBC economist Ma Xiaoping.

Exports to the US have performed well so far this year but declined 2.5 per cent year on year in November, likely as a result of labour trouble in California, according to Bank of America-Merrill Lynch economist Lu Ting. Exports to the EU decreased 18 per cent as the region's economy continued to suffer.