China June trade surplus widens to $27.13 Billion

ccChina’s exports and imports unexpectedly declined in June, underscoring the severity of the slowdown in the world’s second-biggest economy as Premier Li Keqiang reins in credit growth.

Overseas shipments fell 3.1 percent from a year earlier, the most since the global financial crisis, data from the General Administration of Customs showed in Beijing today. Imports dropped 0.7 percent, while the median projection was for a 6 percent increase.

Exports to the U.S. and European Union declined for a fourth straight month while the drop in imports resulted in part from falling commodity prices. Weaker global and domestic demand, highlighted by China’s biggest shipyard outside state control seeking a government bailout, increases pressure on Li to support growth that’s at risk of sliding to the weakest since 1990 even as he vows to press on with restructuring the economy.

“Following on the subdued activity data of recent months, the June trade data challenges the resolve of China’s policy makers to keep the macro policy stance firm,” said Louis Kuijs, chief China economist at Royal Bank of Scotland Plc in Hong Kong.

The trade surplus was $27.1 billion for the month, compared with the median analyst estimate of $27.8 billion. Exports rose 1 percent in May from a year earlier, while imports fell 0.3 percent.

The report follows May’s collapse in export gains after a crackdown on fake invoices that inflated data in the first four months of the year. Trade growth in danger of coming in below the government’s target of 8 percent for the year and a cash crunch that sent interbank borrowing costs to records last month will test Li’s reluctance to add stimulus, with expansion at risk of coming in below the government’s annual goal of 7.5 percent.

One reason for the weak trade figures might be that the customs agency “had to deflate trade data in June to neutralize previous over-reporting,” economists Zhi Xiaojia and Lu Ting in Hong Kong said in a report. Appreciation in the yuan this year may also be making Chinese exports less competitive, they said.

 

 

 

Source : Asia News | July 10, 2013

 

 

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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