China exports record 1st monthly fall in 7 years

BEIJING, Dec. 10 Kyodo - China has recorded its first monthly fall in exports in seven years, according
to government figures released Wednesday, as the slump in demand for Chinese
goods abroad sparked by the global financial crisis begins to bite.
A statement from the General Administration of Customs said Chinese exports
totaled just under $115 billion in November, down 2.2 percent on the same month
last year.
It is the first time monthly exports have fallen since June 2001, according to
the state-run Xinhua News Agency.
Exports have been one of the driving forces behind China's rapid economic
growth and the government is now attempting to reduce the country's reliance on
the sale of Chinese goods abroad by boosting the domestic economy to help China
weather the global financial slump.
November's fall in exports compares with a 19.2 percent increase in October on
the year.
China's trade surplus rose to a record $40 billion last month despite the fall
in exports, but this was due to the level of imports coming into the country
falling even faster.
Imports dropped by nearly 18 percent on the year to just under $75 billion, an
indication of slowing economic demand for goods and services within China.
The government is holding a meeting in Beijing this week to discuss how to
boost the country's flagging economy.
It announced a $586 billion economic stimulus package last month, which
included massive investment in infrastructure projects.
The central bank has also cut interest rates four times in recent months to
boost investment and spending.
Officials have also indicated in the state-run media that business taxes will
be cut to ease the financial pressure on commercial enterprises.
Thousands of Chinese workers have already been laid off at factories which rely
heavily on export sales and officials have warned of social unrest if the
government fails to contain the effects of the economic slowdown.
Government officials say unemployment now stands at about 4 percent, but Human
Resources Minister Yin Weimin admitted last month that this figure does not
include migrant workers so the true number of jobless could be higher.
The World Bank predicts that China's economy will grow by 7.5 percent next year
due to the slowdown, but analysts quoted by the state-run media say growth of 8
percent is needed to ensure jobs for people entering the country's workforce.
==Kyodo
2008-12-11 00:09:12