News / Economy

China Trade Unexpectedly Worsens in June

A truck drives past shipping containers at a port in Ningbo, Zhejiang province, July 9, 201
A truck drives past shipping containers at a port in Ningbo, Zhejiang province, July 9, 201
VOA News
China has released unexpectedly poor trade data for June, in a further sign of weakness in the world's second largest economy.

Government figures showed exports fell 3.1 percent from a year earlier. That is well below market expectations of around four percent growth. Imports also dropped 0.7 percent, a figure much weaker than forecast. China's trade surplus fell to just over $27 billion.

Customs spokesperson Zheng Yuesheng told reporters China's foreign trade is facing "grave challenges" and warned the third quarter export outlook is "grim." He blamed weak foreign demand for Chinese products, rising labor costs, and a stronger yuan currency.

Some slowdown in China's trade growth was expected in June because of a government crackdown on faulty data by exporters, which led to inaccurate trade figures earlier in the year.

China's government has expected slower economic growth as it attempts to transition from a reliance on exports and toward greater domestic consumer demand.

But Robert Blohm with the Hong Kong-based Keen Resources Asia consultancy tells VOA the weak import numbers suggest Beijing is having a difficult time boosting domestic consumption.

"The decline in imports in June, which shows the domestic economy, means the so-called consumer economy isn't going anywhere, either," he said.

Blohm says evidence of China's slowing economy is seen in the many moribund construction projects spread across the country.

"There are blocks of residential compounds and they have cloths up around the sides of the buildings to prevent a lot of dust from going in and deteriorating them. There's no work going on, and you see that in all Chinese cities," he explained.

China's economy is attempting to rebound from a prolonged slowdown, which follows three decades of staggering growth. Its economy grew 7.8 percent last year, its worst performance in 13 years. Beijing has set a modest growth target of 7.5 percent for 2013.

The latest data comes after the International Monetary Fund this week predicted slower global growth with a warning that China faces a risk of a "large decrease in growth."

Analysts say the restructuring of China's economy toward domestic consumption is likely to be a long and gradual process. But some analysts say the latest trade figures could prompt the government to temporarily delay that process in order to stimulate growth and avoid social instability.

You May Like

US Imposes Sanctions on Alleged Honduran Drug Gang

Treasury department alleges Los Valles group is responsible for smuggling tens of thousands of kilograms of cocaine into US each month More

At 91, Marvel Creator Stan Lee Continues to Expand his Universe

Company's chief emeritus hopes to interest new generation of children in superheroes of all shapes and sizes by publishing content across multiple media platforms More

Photogallery New Drug Protects Against Virus in Ebola Family

Study by researchers at University of Texas Medical Branch, Tekmira Pharmaceuticals is first looking at drug's effectiveness after onset of symptoms More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
African Media Tries to Educate Public About Ebolai
X
George Putic
August 20, 2014 8:57 PM
While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video Ferguson Calls For Justice as Anger, Violence Grips Community

Violence, anger and frustration continue to grip the small St. Louis suburb of Ferguson, Missouri. Protests broke out after a white police officer fatally shot an unarmed black teenager on August 9. The case has sparked outrage around the nation and prompted the White House to send U.S. Attorney Eric Holder to the small community of just over 20,000 people. VOA’s Mary Alice Salinas has more from Ferguson.
Video

Video Beheading Of US Journalist Breeds Outrage

U.S. and British authorities have launched an investigation into an Islamic State video showing the beheading of kidnapped American journalist James Foley by a militant with a British accent. The extremist group, which posted the video on the Internet Tuesday, said the murder was revenge for U.S. airstrikes on militant positions in Iraq - and has threatened to execute another American journalist it is holding. Henry Ridgwell has more from London.
Video

Video Family Robots - The Next Big Thing?

Robots that can help us with daily chores like cooking and cleaning are a long way off, but automatons that serve as family companions may be much closer. Researchers in the United States, France, Japan and other countries are racing to build robots that can entertain and perform some simpler tasks for us. VOA’s George Putic reports.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.

AppleAndroid

World Currencies

EUR
USD
0.7492
JPY
USD
102.27
GBP
USD
0.5960
CAD
USD
1.0950
INR
USD
61.300

Rates may not be current.