This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-16065510
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| China warns of 'severe challenges' to exports to West | China warns of 'severe challenges' to exports to West |
| (40 minutes later) | |
| China faces "severe challenges" to its exports due to economic difficulties in key Western markets, the country's commerce ministry has warned. | China faces "severe challenges" to its exports due to economic difficulties in key Western markets, the country's commerce ministry has warned. |
| Data due to be released on Saturday will show a sharp slowdown in export growth in November, the ministry said. | Data due to be released on Saturday will show a sharp slowdown in export growth in November, the ministry said. |
| Sales to Europe and the US, which comprise about 40% of total exports, were not expected to recover next year. | Sales to Europe and the US, which comprise about 40% of total exports, were not expected to recover next year. |
| The ministry said China would instead target exports to developing markets in Asia and Latin America. | The ministry said China would instead target exports to developing markets in Asia and Latin America. |
| Weaker manufacturing | |
| China will also try to boost its imports from the West, the ministry said, in order to help support their economies and to balance out China's trade surplus. | |
| Exports to the European Union fell 9% in October versus a year ago, and exports to the US fell 5%. | |
| The country's total exports, however, were still up 15.9%, thanks in part to booming demand from Latin America. | |
| But it was the weakest annual growth rate in two years, and exports were sharply down compared with a month earlier. | |
| Imports were also down, although a large part of these include parts and materials for assembly in China and onward export. | |
| The poor performance was mirrored by a recent manufacturing survey, which indicated that the sector contracted in November for the first time since the 2008-09 Western recession. | |
| The commerce ministry also blamed rising wages in China for hurting its trade competitiveness. | |
| Possible resistance | |
| "Next year, I think that we will face severe challenges in our exports and imports," said Foreign Trade Director Wang Shouwen. | |
| "However, some developing and emerging economies are enjoying sound economic performances, so we will attach more importance to exports to these countries." | |
| China's plan to focus on developing markets may meet with resistance. | |
| Recent data showed that Brazil's economic growth had slowed to a standstill. | |
| The country - Latin America's biggest - has previously complained about the threat to its own export competitiveness posed by the weakness of Western currencies. | |
| Meanwhile in India, the mood may be turning against opening up the country's economy to foreign competitors. | |
| The government suspended plans to let global supermarkets compete in the country, following political uproar and public protests. |