BEIJING (Reuters) – China’s exports grew at a slower pace in November than the bumper month before, while imports unexpectedly shrank, in a worrying sign for the world’s No. 2 economy as Donald Trump’s imminent return to the White House brings fresh trade risks.
U.S. President-elect Trump has pledged to slap an additional 10% tariff on Chinese goods in a bid to force Beijing to do more to stop the trafficking of chemicals used to make fentanyl.
The president elect previously said he would introduce tariffs in excess of 60% on Chinese goods.
Meanwhile, unresolved tensions with the European Union over tariffs of up to 45.3% on China-made electric vehicles threaten to open a second front in Beijing’s trade war with the West.
Outbound shipments from the world’s second-largest economy grew 6.7% year-on-year last month, customs data showed on Tuesday, missing an 8.5% increase in a Reuters poll of economists and a 12.7% rise in October.
Imports shrank 3.9%, compared with expectations for a 0.3% increase and a 2.3% fall in October.
China’s trade surplus grew to $97.44 billion last month, up from $95.72 billion in October.
Export momentum had been one bright spot for a struggling economy with household and business confidence dented by a prolonged property market crisis.
The economy had recently seen some signs of stimulus trickling through, with manufacturers reporting the best business conditions in seven months in November in a factory survey.
Firms said they were still receiving fewer export orders, however, suggesting buyers remain hard to come by in a slowing global economy and exporters are moving stocks to warehouses abroad in anticipation of demand picking up again.
South Korea’s exports, a leading indicator of China’s imports, slowed to the weakest level in 14 months in November.
Outbound shipments to China contracted for the first time in eight months, pointing to Chinese manufacturers buying in fewer Korean components for re-export in finished electronics goods.
Chinese government advisors are pushing for strong fiscal stimulus to mitigate the impact of expected U.S. tariff hikes on the country’s exports and for Beijing to maintain an economic growth target of around 5.0% for next year.
Top policymakers are expected to meet this week to set out their priorities for the coming year. Investors will be looking for fresh policy support to local governments and the property sector from the Politburo.