 "China Dec export growth slows, rosier 2014 seen")
China's export growth slowed more than expected in December due to a higher comparison base a year earlier and a clamp-down on speculative activities disguised as export deals, missing the official target on foreign trade.
But the outlook for 2014 is expected to be brighter as global demand picks up, giving more wiggle room for Chinese leaders to push through reforms to balance the world's second-largest economy.
"Exports weakened dramatically, but were close to the consensus. The data is positive for China and Asia sentiment as it alleviates concerns that China is slowing too sharply," said Dariusz Kowalczyk, a senior economist and strategist for Credit Agricole CIB in Hong Kong.
Imports rose 8.3 per cent, quickening from 5.3 per cent in November and overshooting the same rate expected by the market, raising optimism that domestic demand may remain firm despite signs that the world's second-largest economy is losing steam.
The December trade surplus fell 24.3 per cent from a year earlier to $25.6 billion, missing the forecast of $31.2 billion.
Exports to the United States rose 3 per cent in December from a year earlier, while sales to the European Union rose 3.9 per cent and those to Japan climbed 5.5 per cent, according to official figures.
For 2013, exports rose 7.9 per cent and imports rose 7.3 per cent, producing a trade surplus of $259.8 billion, up 12.4 per cent from 2012.
China's combined exports and imports rose 7.6 per cent in 2013, below the official target of 8 per cent. In 2012, China missed a 10 per cent annual growth target. The government does not set any target on exports.
Better 2014
Uncertain global demand, a stronger yuan currency and rising labour costs have taken their toll on Chinese exporters, but analysts believe sales could pick up modestly in 2014 due to improved demand from the United States and Europe.
"China's exporters are facing pressures from rising costs, including increasing labour costs and yuan currency appreciation," customs spokesman Zheng Yuesheng told a news conference, adding that trade is entering a "stabilisation and development stage" in 2014.
"The strengthening recovering of developed economies will likely gradually lead the global economy out of the financial crisis, which will improve the external environment of China's exports," said Zheng.
China's Commerce Ministry has pledged to maintain steady trade growth this year and further balance its trade structure by increasing imports of raw materials and energy products.
"The biggest surprise is December imports. This suggests China's domestic demand is continuing to improve," said Sun Junwei, China economist at HSBC in Beijing.
"We expect exports to show further recovery in 2014, but the magnitude would be small and at around 10 per cent. Imports could be supported by steady domestic demand and are likely to grow around 8 per cent this year."
Li Jian, head of foreign trade research of the Chinese Academy of International Trade and Economic Cooperation - the Commerce Ministry's think tank, has also predicted 2014 export growth of around 10 percent.
The government is due to issue fourth-quarter gross domestic product data on January 20. A Reuters poll showed annual GDP growth could slow to 7.6 per cent in the fourth quarter, putting 2013 growth on track for the weakest showing in 14 years.
Chinese leaders have pledged reasonable growth in 2014, and sources at top government think tanks told Reuters they expect a growth target of 7.5 per cent, the same as for 2013.
China's leaders want to wean the economy off its heavy reliance on investment and exports in favour of a more sustainable expansion in consumption and have unveiled the boldest economic and social reforms in nearly three decades to pursue that goal.
China mulls national pollution permit trading system
China will look into establishing a nation-wide trading system for pollution permits as part of efforts to use market mechanisms to help clean up its environment, the country's top environment official said. In remarks published on the website of the Ministry of Environmental Protection (www.mep.gov.cn) on Friday, minister Zhou Shengxian said China was working on new regulations for pollution permits and would also publish proposals for new pilot trading projects as soon as possible.
China has vowed to reverse the environmental consequences of three decades of breakneck industrial expansion and clean up its heavily polluted air, water and soil and is hoping to use the market to encourage firms to cut emissions.
But the outlook for 2014 is expected to be brighter as global demand picks up, giving more wiggle room for Chinese leaders to push through reforms to balance the world's second-largest economy.
"Exports weakened dramatically, but were close to the consensus. The data is positive for China and Asia sentiment as it alleviates concerns that China is slowing too sharply," said Dariusz Kowalczyk, a senior economist and strategist for Credit Agricole CIB in Hong Kong.
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Exports rose 4.3 per cent in December from a year earlier, the Customs Administration said on Friday, slowing from 12.7 per cent in November and compared to market expectations of 4.9 per cent.
Imports rose 8.3 per cent, quickening from 5.3 per cent in November and overshooting the same rate expected by the market, raising optimism that domestic demand may remain firm despite signs that the world's second-largest economy is losing steam.
The December trade surplus fell 24.3 per cent from a year earlier to $25.6 billion, missing the forecast of $31.2 billion.
Exports to the United States rose 3 per cent in December from a year earlier, while sales to the European Union rose 3.9 per cent and those to Japan climbed 5.5 per cent, according to official figures.
For 2013, exports rose 7.9 per cent and imports rose 7.3 per cent, producing a trade surplus of $259.8 billion, up 12.4 per cent from 2012.
China's combined exports and imports rose 7.6 per cent in 2013, below the official target of 8 per cent. In 2012, China missed a 10 per cent annual growth target. The government does not set any target on exports.
Better 2014
Uncertain global demand, a stronger yuan currency and rising labour costs have taken their toll on Chinese exporters, but analysts believe sales could pick up modestly in 2014 due to improved demand from the United States and Europe.
"China's exporters are facing pressures from rising costs, including increasing labour costs and yuan currency appreciation," customs spokesman Zheng Yuesheng told a news conference, adding that trade is entering a "stabilisation and development stage" in 2014.
"The strengthening recovering of developed economies will likely gradually lead the global economy out of the financial crisis, which will improve the external environment of China's exports," said Zheng.
China's Commerce Ministry has pledged to maintain steady trade growth this year and further balance its trade structure by increasing imports of raw materials and energy products.
"The biggest surprise is December imports. This suggests China's domestic demand is continuing to improve," said Sun Junwei, China economist at HSBC in Beijing.
"We expect exports to show further recovery in 2014, but the magnitude would be small and at around 10 per cent. Imports could be supported by steady domestic demand and are likely to grow around 8 per cent this year."
Li Jian, head of foreign trade research of the Chinese Academy of International Trade and Economic Cooperation - the Commerce Ministry's think tank, has also predicted 2014 export growth of around 10 percent.
The government is due to issue fourth-quarter gross domestic product data on January 20. A Reuters poll showed annual GDP growth could slow to 7.6 per cent in the fourth quarter, putting 2013 growth on track for the weakest showing in 14 years.
Chinese leaders have pledged reasonable growth in 2014, and sources at top government think tanks told Reuters they expect a growth target of 7.5 per cent, the same as for 2013.
China's leaders want to wean the economy off its heavy reliance on investment and exports in favour of a more sustainable expansion in consumption and have unveiled the boldest economic and social reforms in nearly three decades to pursue that goal.
China mulls national pollution permit trading system
China will look into establishing a nation-wide trading system for pollution permits as part of efforts to use market mechanisms to help clean up its environment, the country's top environment official said. In remarks published on the website of the Ministry of Environmental Protection (www.mep.gov.cn) on Friday, minister Zhou Shengxian said China was working on new regulations for pollution permits and would also publish proposals for new pilot trading projects as soon as possible.
China has vowed to reverse the environmental consequences of three decades of breakneck industrial expansion and clean up its heavily polluted air, water and soil and is hoping to use the market to encourage firms to cut emissions.