China warns of challenges to exports

Beijing:China faces severe challenges to its exports due to economic difficulties in key Western markets, the countrys commerce ministry has warned.BBC Newsreported on Wednesday that 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 per cent 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.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 Chinas trade surplus.Exports to the European Union fell by nine per cent in October versus a year ago, and exports to the US fell by five per cent.The countrys total exports, however, were still up 15.9 per cent, 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.Next year, I think that we will face severe challenges in our exports and imports, said Foreign Trade Director, Mr. Wang Shouwen.He said, There wont be fundamental improvement in Europe or the United States, and costs at home will stay as high as this year, so the foreign trade situation will be severe next year.
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