China’s import-export nose dives: imports at-18.8% in January 2015

Shanghai Stock Exchange reopens, but trading is slow. China’s markets affected by the publication of data on the trade balance, with plummeting exports: in January they collapsed to -11%, with imports at - 18.8%. China's surplus with the rest of the world amounts to 63.3 billion dollars.

 


Beijing (AsiaNews / Agencies) - The reopening of the Shanghai Stock Exchange and gains made by Tokyo are not helping the Chinese economy, which continues to register major losses in import-exports. Compared to last year, China's exports fell by 11.2% annually in January, compared with estimates of roughly -1.9%. Imports fell by 18.8% annually, on estimates for a -0.8%.

The trade balance shows a surplus of 63.29 billion dollars, up from 60.09 billion in December. In yuan, exports have suffered a year over year collapse -6.6% in January, while imports were down 14.4%, with the trade balance showing a record surplus of 406 billion yuan.

Analysts say it is due to a weakening demand, both foreign and domestic. But the latest data is part of a now annual trend, and increases expectations of more stimulus measures by the Chinese authorities to counter the economic slowdown of the country and fears related to tensions in financial markets.

The stabilization of the economy is the main concern of the Chinese government, which fears unemployment and financial losses. With the decline of the gross domestic product, in fact, there has been a collapse in the jobs market and hand in hand with this a decline in the purchasing power of the  population. These two factors combined could trigger massive social protests – which are already growing exponentially despite Xi Jinping’s tight reign - going so far as to question the one-party political system dominated by the communist regime.