According to the customs data announced on Sunday, China’s exports have dropped for the fourth month in a row in November. The November’s data reiterated that China’s economy is under pressure amidst the U.S – China trade complications.
The trade war between the two largest economies of the world has gone on for more than two years. The events have kept the global financial markets under pressure and have fueled the risk of recession. The recent economic data further highlights the dire need for China to add more stimulus in order to give a boost to the economy.
Overseas Shipments Drop By 1.1% In November
As per the data, overseas shipments noted a drop of 1.1% in November compared to the figure for last year. Analysts had estimated a 1.0% expansion in overseas shipments. Earlier in October, the overseas shipments had printed a 0.9% decline.
In terms of imports, however, China reported positive results in November. Against the expectations of a 1.8% decline, the data highlighted the imports to have gained 0.3% for China. Earlier in October, the largest Asian economy had seen a massive 6.4% decline in imports. November’s data for imports is the first time in the previous six months that the index recorded growth (year-over-year).
With China insisting the U.S to roll back the previously imposed tariffs and Washington pushing it to commit to purchasing more of the U.S agricultural products, the trade deal continues to stretch further towards the end of 2019. President Trump’s support for the Hong Kong’s prodemocracy bill construed as the U.S meddling in China’s internal affairs, had also caused a hiccup in progress earlier in November. Trump had also announced last week that he may wait to finalize the deal with China until the 2020 presidential elections. The announcement had shaken the optimism circling an imminent phase 1 deal.
China’s Trade Surplus In November Declines To $38.73 Billion
Later last week, however, representatives from both sides had changed tone that reiterated that the trade talks are moving in the right direction.
As per the data announced at 03:00 GMT on Sunday, November’s trade surplus for China was reported at $38.73 billion. Analysts had forecasted $46.30 billion surplus for China in November. Earlier in October, trade surplus was reported at $42.81 billion.
According to the forex analysts, the response of the economic data in the forex market will be evident on Monday as the market reopens for traders. USD/CNY closed the last week at 7.0349, following an upward rally from the daily low of around 7.0260.