Exports from China fall 7.7%, the worst drop since 2009 – Expansion MX

BEIJING (Reuters) –

The enormous engine of China’s export slowed for the second consecutive year in 2016, when shipments declined by a persistent weakness in global demand and in the midst of the fear of a trade war with the united States which darkens the outlook for 2017.

In a week, the leaders of China know if the president-elect of the united States, Donald Trump, fulfills his campaign promise to designate Beijing as a manipulator of currency on his first day in office and if he carries out his threat of set heavy tariffs on the import of chinese products.

Even if the government of Trump does not take any specific action right away, analysts say that the ghost of the deterioration of the ties in trade and politics of the united States and China is likely to weigh on the confidence of exporters and investors from around the world.

China reported Friday that its exports fell 7.7%, and its imports declined to 5.5% in 2016. The decline of exports was its second decline in annual row and the worst since the global crisis of 2009.

it Will be difficult for the foreign trade to improve this year, especially if the arrival of Trump at the White House and other major policy changes limiting the growth of chinese exports for more protectionist measures, said Friday the agency of customs of the country.

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“The trend of globalization is becoming increasingly apparent, and China is its biggest victim,” the spokesman said customs Huang Songping to the press.

“we’re Going to pay a lot of attention to the foreign trade policy after Trump take over the presidency,” said Huang. Trump will take the place on the 20th of January.

China’s exports fell 6.1% yoy in December, more than expected, while imports exceeded slightly the estimates with a growth of 3.1% thanks to solid demand for raw materials.

An unexpected increase of 0.1% of shipments in November, although mild, had generated hopes that China was catching up with an improvement of exports as seen in other asian economies.

China reported a trade surplus of 40,820 million dollars in December compared to the 44,610 million dollars in November.