China exports fall sharpest in over a decade

[Naveed Yaseen]

BEIJING: China's exports fell 17.5 percent in January from a year earlier; customs authorities said Wednesday, marking the sharpest drop in more than a decade.

The country's trade surplus remained high at 39.1 billion dollars, due to an even steeper drop in imports, which plunged 43.1 percent year-on-year, according to customs data.

The weakening in the trade statistics came amid falling demand in key overseas markets and a general reduction in activity caused by the Lunar New Year holiday period, which began in January.

"The sharp slump in both inbound and outbound trade was likely exacerbated by the Chinese New Year holiday," Jing Ulrich, head of China equities at JP Morgan, said in a report on the data.

"The sharp contraction in imports reflects slowing domestic investment and lower demand and likely signals continuing export weakness in the future," she added.

The drop in exports followed declines of 2.8 percent in December and 2.2 percent in November, the first time in seven years that Chinese exports have fallen.

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