China’s exports experience a sharp decline

China’s exports have fallen at their fastest rate in nearly thirteen years as demand from both the US and Europe has halted.

China’s biggest market, the European Union, has fallen 17.4 percent while the US was down by 9.8 percent.

The biggest falls were in steel which fell by 32.5 percent and machinery and electronics down 21 percent.

Imports have also fallen to a record low which is a further indication that the economic slump has hit China harder than expected.

China now has the second largest trade surplus of $39.1 billion and this may lead to greater international tensions amid fears of protectionism in the current economic climate.

It is predicted that economic growth is likely to cool to 6.1 percent over the this quarter which is coming close to the lowest rate in over ten years.

Analysts indicate that the slump will continue, as the world economy contracts and this can already be seen with China’s crude oil imports which are at their lowest level for 15 months after the country shipped in only 12.82 million tonnes of crude oil, 11 percent down from the previous month.

The yuan traded at 6.8331 per dollar before the trade gap announcement, although the week long Lunar New Year holiday is likely to have skewed the report.

Import costs have fallen drastically as the reduction in commodity prices alongside the demand for raw materials has fallen.

The slump in the property market, as well as a reduction in exports, has caused the value of crude imports to fall by 57 percent compared to 2008.

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