China’s exports slowed sharply and imports unexpectedly fell in November, sending a wake-up call to the world’s second-largest economy. The situation becomes even more acute against the backdrop of Donald Trump’s quick return to the White House, which could lead to new trade challenges. About this informs Reuters.
The latest economic data points to unstable growth in China. The November figures highlight the need for additional support measures to avoid further deterioration in the coming year. Exports grew by 6.7%, which is below the forecast of 8.5% and significantly less than October’s growth of 12.7%.
Of particular concern was the 3.9% contraction in imports, the worst result in nine months, well above expectations for a 0.3% gain. The data reinforce calls for policy action to stimulate domestic demand.
Meanwhile, US President-elect Donald Trump has announced his intention to impose additional tariffs on Chinese goods, including 10%, to force Beijing to step up its fight against illegal trafficking of chemicals used to make fentanyl. Trump previously threatened tariffs that could exceed 60%.
For China, such tariffs pose a more serious risk than during the previous Trump presidency. Exports, which remain one of the key drivers of the $19 trillion economy, are under threat. In addition, consumer and business confidence is weakened by the prolonged crisis in the real estate sector, which further complicates the situation.
