China exports soar higher than expected in November

Beijing, Dec 8 (AFP) Chinese exports surged more thantwice the expected pace in November, official data showedtoday, providing some more welcome ne...

Beijing, Dec 8 (AFP) Chinese exports surged more thantwice the expected pace in November, official data showedtoday, providing some more welcome news pointing toimprovement in the world's number-two economy.

The healthy trade data, which also showed importsoutstripping forecasts, come as Beijing looks to tackleindustrial overcapacity, winter pollution and a ballooningdebt pile.

Exports jumped 12.3 per cent year-on-year to $217.4billion, blowing past the 5.3 per cent forecast in a BloombergNews survey.

"The robust global economy -- both the developed anddeveloping economies -- has lifted China's exports," YaoShaohua, an economist at ABCI Securities Co. told BloombergNews.

Imports expanded 17.7 per cent to $177.2 billion,surpassing expectations of 13 per cent.

However, the trade surplus grew last month to $40.2billion, suggesting trade tensions with China's main tradingpartners the US and the European Union are unlikely to let upin the near future.

There are concerns about a possible trade war sinceDonald Trump was elected US president last year, after thetycoon constantly accused Beijing of killing American jobs andundermining its companies.

And while he has tempered his language since taking theover at the White House, tensions remain high.

Friday's figures follow data earlier this week showingfactory activity in the country accelerated faster thanexpected in November.

A string of previous indicators suggest the economy isstabilising -- after years of slowing growth -- with grossdomestic product tipped to expand at a faster pace than thegovernment's target this year.

However, Beijing's moves to wind down production at somesteel factories and smelters in a drive to clean up thecountry's smog-ridden cities has dragged on industrial output.

The latest readings were also a positive sign for China'stransition from an investment and export driven growth modelto one fuelled by the consumption of its 1.4 billion people.

But there are also worries the consumer spending is beingdriven too much by credit.

The debt mountain is estimated at 234 percent of grossdomestic product by the International Monetary Fund, which onThursday warned it added to financial risk and may weigh onfuture economic growth.

The IMF said that 27 out of the 33 banks it had carriedout tests on -- accounting for three-quarters of China'sbanking system assets -- were "undercapitalised relative to atleast one of the minimum requirements".

It recommended banks raise capital to ward off fundingissues that could arise in case of a dramatic downturn.

Some economists also worry that imports will not hold upin the face of looming headwinds.

"We are sceptical that the strength of imports can besustained given that the delayed impact of policy tighteningand a cooling property market are set to weigh on Chinesedemand for commodities in coming quarters," said JulianEvans-Pritchard, China Economist at Capital Economics.(AFP)AMS.

This is unedited, unformatted feed from the Press Trust of India wire.

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