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China at risk of economic slump due to trade deficit

China at risk of economic slump due to trade deficit

BEIJING: The country’s economy is at risk as China’s exports have decreased and imports have gone doubled. The trade deficit might get china’s economic health affected. Experts have raising concerns about the problem, that it might be the reason for slowdown of whole economy.

Official data suggest that China’s exports rose 4.7 percent year on year in November, a deceleration from October’s figure of 11.6 percent.

Imports in November dropped 6.7 percent, marking the biggest fall since this March.

This left the country with a record trade surplus of over 54 billion U.S. dollars, a jump of 60 percent year-on-year.

Economists attribute the decline in imports to a weak domestic demand.

Wang Jun is a researcher under the China Center for International Economic Exchanges.

“There are two main factors: the first is weak domestic demand, reflecting the downward pressure on economy. The other factor is related to the fluctuation of commodities in November. The falling oil prices dragged down prices of commodities. There are a large number of commodities imported to China every year. The decline in commodities prices has also reflected in the drop of imports.”

Meanwhile, in the first eleven months of this year, China’s imports increased 0.8 percent and exports were up 5.7 percent, with the trade surplus hitting 330 billion U.S. dollars, up more than 40 percent year on year.

China’s customs authority commented that both imports and exports in the first eleven months have recorded steady growth.