China's exports hit the biggest drop in two years

China's exports hit the biggest drop in two years

China's exports hit the biggest drop in two years

China's exports hit their biggest drop in two years in December, according to the latest trade data. Chinese exports fell by 4.4 percent last month, compared to last year, and imports fell 7.6 percent. The latest data suggest that the world's second-largest economy is further weakened, leading to lower Asian stock markets Monday.

The latest data released on Monday show that the country's trade surplus with the United States reached its highest level in 2018. The difference between China's exports and imports from the United States rose by 17.2 percent to 323.32 billion US dollars last year.

China's success in selling its products to other countries has angered US President Donald Trump and started a trade war with Beijing aimed at curbing exports. This has led companies to pay more for exports in order to try to pre-empt the application of new tariffs. About two years after the new tariffs were imposed on a growing list of Chinese products, Beijing and the two major countries began talks last week aimed at ending their conflict.




Deterioration "eye-catching"

 The low demand in China itself had a significant impact on certain companies. Earlier this month, Apple warned that its revenues could fall more than expected, partly because of the slowdown in China's economy. The Jaguar-Land Rover automaker was also hit by weak sales in China. December's trade data indicate that the economy may be slowing faster than feared.


  "The magnitude of the decline in both exports and imports is remarkable, as the two fell more in December, after a significant drop in November," said Asia economist Frya Bemish. She added that the recovery of the economy in recent months was due to the rush to buy before the introduction of new tariffs. But trade is now at a lower level.