BEIJING- China’s exports grew at a slower pace in November than the bumper month before, while imports unexpectedly shrank, in a worrying sign for the world’s No. 2 economy as Donald Trump’s imminent return to the White House brings fresh trade risks.
US President-elect Trump has pledged to slap an additional 10 percent tariff on Chinese goods in a bid to force Beijing to do more to stop the trafficking of chemicals used to make fentanyl.
Outbound shipments grew just 6.7 percent last month, customs data showed on Tuesday, missing an 8.5 percent increase in a Reuters poll of economists and a 12.7 percent rise in October.
More worryingly, imports shrank 3.9 percent, their worst performance in nine months and dashing expectations for a 0.3 percent increase, keeping alive calls for more policy support to prop up domestic demand.
Trump has previously said he would introduce tariffs in excess of 60 percent on Chinese goods.
Meanwhile, unresolved tensions with the European Union over tariffs of up to 45.3 percent on China-made electric vehicles threaten to open a second front in Beijing’s trade war with the West.
US tariff hikes pose a bigger threat to China this time around as the $19 trillion-dollar economy’s exports are one of its main growth drivers, with household and business confidence dented by a prolonged property crisis.
Government advisors are recommending that Beijing keeps its growth target unchanged at around 5 percent next year and implements more forceful stimulus to mitigate the expected US tariffs by leaning on the country’s vast domestic consumer market. “Global demand is not super strong, data from other major exporters like South Korea and Vietnam point to different levels of slowdown too,” said Xu Tianchen, senior economist at the Economist Intelligence Unit.
