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| Version 3 | Version 4 |
|---|---|
| China reports weaker than expected trade data | China reports weaker than expected trade data |
| (35 minutes later) | |
| China has reported an unexpected fall in its exports and imports, adding to concerns of a slowdown in its economy. | China has reported an unexpected fall in its exports and imports, adding to concerns of a slowdown in its economy. |
| Exports fell 3.1% in June from a year earlier, indicating weak global demand for Chinese goods. Most analysts had expected a 4% increase in shipments. | Exports fell 3.1% in June from a year earlier, indicating weak global demand for Chinese goods. Most analysts had expected a 4% increase in shipments. |
| Imports fell 0.7% from a year ago, showing a subdued domestic demand. | Imports fell 0.7% from a year ago, showing a subdued domestic demand. |
| China, the world's second-largest economy, has been keen to rebalance its economy, after a decline in global demand hurt its export-led growth. | China, the world's second-largest economy, has been keen to rebalance its economy, after a decline in global demand hurt its export-led growth. |
| China's economy grew at an annual pace of 7.7% in the January to March quarter, compared with 7.9% in the previous three months. | China's economy grew at an annual pace of 7.7% in the January to March quarter, compared with 7.9% in the previous three months. |
| Analysts say second-quarter GDP figures, due to be released on Monday, are likely to show a further slowdown, as demand in key export markets in the US and Europe remains weak. | |
| At the same time, policymakers have found it tough to boost domestic consumption enough to offset a decline in foreign sales. | At the same time, policymakers have found it tough to boost domestic consumption enough to offset a decline in foreign sales. |
| Analysts said the surprise fall in exports and imports in June indicated that China's economic growth was likely to remain under pressure in the coming months. | Analysts said the surprise fall in exports and imports in June indicated that China's economic growth was likely to remain under pressure in the coming months. |
| "We expect both export and import data may remain at a relatively low level in the second half, due to weak demand at home and abroad," said Wang Jin, an analyst at Guotai Junan Securities in Shanghai. | "We expect both export and import data may remain at a relatively low level in the second half, due to weak demand at home and abroad," said Wang Jin, an analyst at Guotai Junan Securities in Shanghai. |
| Various organisations, including the World Bank and the International Monetary Fund, have recently cut their outlook for China's growth. | Various organisations, including the World Bank and the International Monetary Fund, have recently cut their outlook for China's growth. |
| 'True picture' | 'True picture' |
| Chinese export data had shown positive signs of a gradual recovery in external demand in recent months. | Chinese export data had shown positive signs of a gradual recovery in external demand in recent months. |
| However, that had not been in line with data from other regional countries - which have been showing a slowdown in their export growth. | However, that had not been in line with data from other regional countries - which have been showing a slowdown in their export growth. |
| That triggered speculation that some Chinese exporters may be overstating their shipments in an attempt to bypass restrictions on bringing funds into the country. | That triggered speculation that some Chinese exporters may be overstating their shipments in an attempt to bypass restrictions on bringing funds into the country. |
| Prompted by these concerns, Chinese authorities, who keep a tight grip on capital flows in and out of country, have announced steps to control any illegal flows. | Prompted by these concerns, Chinese authorities, who keep a tight grip on capital flows in and out of country, have announced steps to control any illegal flows. |
| In May, China's foreign exchange regulator, the State Administration of Foreign Exchange (SAFE), said it would increase its scrutiny of export invoices and impose tougher penalties on firms providing false data. | In May, China's foreign exchange regulator, the State Administration of Foreign Exchange (SAFE), said it would increase its scrutiny of export invoices and impose tougher penalties on firms providing false data. |
| Analysts said that the weaker-than-expected figures in June were partially because of the crackdown on such practices. | Analysts said that the weaker-than-expected figures in June were partially because of the crackdown on such practices. |
| "Both exports and imports are weaker than market consensus, partially a result of Beijing's crackdown on speculative capital inflows disguised as trade," said Wang Jin. | "Both exports and imports are weaker than market consensus, partially a result of Beijing's crackdown on speculative capital inflows disguised as trade," said Wang Jin. |
| "From this sense, we can say last month's export figure may reflect a true picture of the current trade situation." | "From this sense, we can say last month's export figure may reflect a true picture of the current trade situation." |