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Exports set back, imports flat in June

Updated: 2013-07-11 01:34
By LI JIABAO in Beijing and QIU QUANLIN in Guangzhou ( China Daily)

Economic indicators showed that China's economic growth is likely to further slide from a 13-year low amid credit tightening and overcapacity, although Premier Li Keqiang has vowed to press on with economic restructuring. Li said on Tuesday China must rely on economic transformation and upgrading to maintain continuous and healthy development.

China's gross domestic product expanded 7.9 percent in the fourth quarter of last year, ending a slowdown over seven quarters. But the growth rate dropped again to 7.7 percent year-on-year in the first quarter of this year.

"The economic improvement in the US and the EU did not increase overseas demand. China's exports in the second half will probably grow at zero percent while import growth is likely to stay at a single-digit pace. Economic growth in the second quarter will further slow from the first quarter," said Jiang Chao, an analyst with Haitong Securities Co Ltd.

The China Export Leading Index, launched by the customs agency at the end of June 2012 based on an online poll of about 2,000 enterprises, registered 36.1 percent at the end of June, down from 37.6 in May, and marked a decrease for two successive months this year, Zheng said.

A total of 49.2 percent of surveyed enterprises reported a smaller value in the amount of new orders from a year earlier while 43.8 percent of them were "not optimistic" about the export outlook over the next two to three months, he added.

The fall in exports over the past two months was mainly down to the decreased competitiveness of China's products from traditional manufacturing industries alongside sluggish demand from the overseas market, according to Chen Zhiyu, vice-general manager of Fujian Meinkind Baby Products Co.

"Many traditional businesses around our factory, such as those in the toy and garment industries, have seen a sharp drop in overseas sales in the first half of the year," said Chen.

Yang Shan, general manager of Skymen Cleaning Equipment Co, said the company's sales in overseas markets remained stable in June because its products integrate good technology and design and so remain popular.

"We are not largely affected by the sluggish global demand for Chinese products. Instead, our products are witnessing rising popularity in Europe and the US," Yang said.

 

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