(MENAFN- ING) Trade slump
China's exports and imports contracted by 8.7% and 10.6% year-on-year
in November, respectively, after contracting by
0.3% and 0.7% in October.
Not everything is so
bad. China's exports to ASEAN, which is now the number one export destination for
China, still grew 2.9% YoY in November. China's exports to Europe, another big destination after ASEAN and the US,
grew 1.5% YoY. China's exports to the US fell 13.2% YoY in the month. Bear
in mind that the role of ASEAN for China is more of a joint supply chain than a final goods export destination. This implies
that production activity
for exports grew slightly
in November. But final
exports to the US and Europe were weak, especially exports to the US. This could mean that
inventory will start
to pile
up as final goods sales were
weak.
Early indicator hints that slump in exports may continue
Smartphone exports contracted 9.6% YoY in November. This could be a combined effect of supply disruption in China as well as weak demand in the US and Europe. But if we look further, it could be more an issue of
weak demand.
Imports from Taiwan contracted by 10.4% YoY in November. Parts and raw material imports into China for the production of
electronic parts and electronic goods contracted. As we use semiconductors as an early indicator of growth, we believe that exports in the coming months should continue to contract.
MENAFN07122022000222011065ID1105278090
Author:
Iris Pang
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