Exports In China Grow For First Time In a Long Time
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After 13 consecutive months of declines, exports in China resumed moving upward in December in a sign of global trade improvement.
Exports in the world's most populous nation jumped by nearly 18 percent in December, beating the analyst expectations, while imports for China grew by 56 percent, reflecting the impact of the country's stimulus-fueled program to offset the global trade meltdown.
The Chinese government is expected to see a strong expansion in the country's economy in the final quarter of 2009, which will add fuel to the debate over when the stimulus packages should end.
December exports rose to $130.7 billion in China as imports grew to $112.3 billion, giving the country a trade surplus of $18.4 billion for the month.
For the year Chinese exports fell 16 percent to $1.2 trillion and imports dropped 11 percent to $1 trillion, according to the data released by General Administration of Customs. 2009 was the first year that China showed an annual export decline since 1983.
Trade surplus in 2009 for China was $196 billion, a drop of 34 percent from the year prior, marking the first annual drop since 2003.
Economists have noted that Chinese exporters have enjoyed an unfair advantage in the world market as the yuan in undervalued, and expect the rise in exports to increase the government's ability to let its currency rise in the upcoming months.
In an addition sign that China is expecting significant growth in 2010, the country imported 628 million tons of iron ore in 2009, up 42 percent from the year prior. Iron ore imports showed exceptional growth in December with an 80 percent jump and the second highest monthly volume on record.
World markets and U.S. stock futures rose on the news of growth in Chinese exports.
Related ETFs:
iShares FTSE/Xinhua China 25 Index (NYSE: FXI)
PowerShares Gldn Dragon Halter USX China (NYSE: PGJ)
SPDR S&P China (NYSE: GXC)
Exports in the world's most populous nation jumped by nearly 18 percent in December, beating the analyst expectations, while imports for China grew by 56 percent, reflecting the impact of the country's stimulus-fueled program to offset the global trade meltdown.
The Chinese government is expected to see a strong expansion in the country's economy in the final quarter of 2009, which will add fuel to the debate over when the stimulus packages should end.
December exports rose to $130.7 billion in China as imports grew to $112.3 billion, giving the country a trade surplus of $18.4 billion for the month.
For the year Chinese exports fell 16 percent to $1.2 trillion and imports dropped 11 percent to $1 trillion, according to the data released by General Administration of Customs. 2009 was the first year that China showed an annual export decline since 1983.
Trade surplus in 2009 for China was $196 billion, a drop of 34 percent from the year prior, marking the first annual drop since 2003.
Economists have noted that Chinese exporters have enjoyed an unfair advantage in the world market as the yuan in undervalued, and expect the rise in exports to increase the government's ability to let its currency rise in the upcoming months.
In an addition sign that China is expecting significant growth in 2010, the country imported 628 million tons of iron ore in 2009, up 42 percent from the year prior. Iron ore imports showed exceptional growth in December with an 80 percent jump and the second highest monthly volume on record.
World markets and U.S. stock futures rose on the news of growth in Chinese exports.
Related ETFs:
iShares FTSE/Xinhua China 25 Index (NYSE: FXI)
PowerShares Gldn Dragon Halter USX China (NYSE: PGJ)
SPDR S&P China (NYSE: GXC)
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