(RTTNews.com) - The Chinese economy is set to remain resilient helped by the strength of the country's stable international trade, despite increasing risks of slowdown, Mark Williams and Qinwei Wang, economists at Capital Economics, said in a note Monday.
The economists said that strong import demand and stable exports to the United States, as data for November showed, continue to offset risks to China's growth.
China's exports increased a better-than expected 13.8 percent annually in November.
However, the rate of growth slowed form October's 15.9 percent, partly reflecting the continuing weakness of shipments to European Union.
The data indicated that in general prospects for Chinese exporters have not improved much.
Shipments to the U.S. increased markedly during the month, suggesting that the U.S. is set to retake its position as China's largest export market for the first time since early 2007.
According to Capital Economics, Chinese export growth is expected to halve between this year and next year with imports for processing and re-exports weakening, and the global demand set to slow further.
At the same time, imports grew 22.1 percent year-on-year in November, though slower than the 28.7 percent increase seen in October.
The growth was partly due to high commodity imports, which may reflect re-stocking on lower prices rather than any significant pick-up in final demand.
There was also a rebound in domestic non-commodity imports, which the economists said was a rare sign of strength after the recent run of weak activity data.
Consequently, the trade surplus decreased modestly in November, with most of the weakness coming from the balance of trade with the rest of emerging Asia and Africa.
There was a slight fall in surplus with the European Union, while the surplus with the U.S. has continued to rise.
nasdaq.com
The economists said that strong import demand and stable exports to the United States, as data for November showed, continue to offset risks to China's growth.
China's exports increased a better-than expected 13.8 percent annually in November.
However, the rate of growth slowed form October's 15.9 percent, partly reflecting the continuing weakness of shipments to European Union.
The data indicated that in general prospects for Chinese exporters have not improved much.
Shipments to the U.S. increased markedly during the month, suggesting that the U.S. is set to retake its position as China's largest export market for the first time since early 2007.
According to Capital Economics, Chinese export growth is expected to halve between this year and next year with imports for processing and re-exports weakening, and the global demand set to slow further.
At the same time, imports grew 22.1 percent year-on-year in November, though slower than the 28.7 percent increase seen in October.
The growth was partly due to high commodity imports, which may reflect re-stocking on lower prices rather than any significant pick-up in final demand.
There was also a rebound in domestic non-commodity imports, which the economists said was a rare sign of strength after the recent run of weak activity data.
Consequently, the trade surplus decreased modestly in November, with most of the weakness coming from the balance of trade with the rest of emerging Asia and Africa.
There was a slight fall in surplus with the European Union, while the surplus with the U.S. has continued to rise.
nasdaq.com
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