BEIJING — In an unexpected turn, China’s exports experienced a slight increase in November, while imports saw a minor decline, according to data from the customs agency released Thursday. Exports, measured in U.S. dollar terms, rose by 0.5% compared to the previous year, surpassing analyst expectations which had predicted a 1.1% decrease, as per a Reuters poll. On the other hand, imports dropped by 0.6% in U.S. dollar terms, not meeting the anticipated 3.3% rise forecasted by Reuters.
This subdued shift in trade figures did little to counteract the broader trend of a 5% to 6% reduction in China’s exports and imports throughout the initial 11 months of 2023. Bruce Pang, Chief Economist and Head of Research for Greater China at JLL, linked the minor improvement in exports to recent business strategies aimed at increasing volume through price reductions. Pang highlighted the persisting weakness in external demand and noted that holiday orders were below expectations, based on a translation by CNBC.
“The data indicate significant challenges in both domestic and international demand, suggesting that policy measures focusing solely on the supply side may not yield sustainable improvements,” Pang commented. November’s trade data further revealed a 7% increase in the value of China’s exports to the U.S. from the previous year. However, exports to the European Union witnessed a 14.5% decrease year-on-year in November, and those to the Association of Southeast Asian Nations (ASEAN) dropped by 7%, according to CNBC’s analysis of the official figures. Despite these variances, exports in sectors such as toys and electronics saw slight increases, and the automotive sector continued to report robust double-digit growth. Conversely, exports of clothing, shoes, and furniture declined from the previous year.
In terms of imports, China reduced its purchases from the U.S. and Southeast Asia in November compared to the same period last year, whereas imports from the EU experienced a marginal increase. Notably, last month saw a reduction in crude oil imports by both price and volume. In contrast, China’s imports of rare earths in November experienced a significant increase, roughly doubling from the previous year.
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