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Reuters

China’s imports and exports contracted again in April in a new sign of economic weakness, adding to pressure on Beijing to roll out more stimulus measures to avert a sharper economic slowdown.
 Imports fell by a bigger-than-expected 16.2 per cent over a year earlier to US$176.3 billion following March’s 12 per cent decline. 
Exports fell 6.4 per cent to US$142.1 billion, adding to the previous month’s 15 per cent decline.
 The unexpectedly weak data “suggest that both foreign and domestic demand has softened going into” the current quarter, said Julian Evans-Pritchard of Capital Economics.
 China’s government is trying to steer China to more sustainable growth based on domestic consumption and reduce reliance on trade, but a sharp decline since mid-2014 has raised concerns about politically dangerous job losses.
 To shore up growth, Beijing has cut interest rates twice since November and also lowered reserve requirements for banks to boost lending. 
The Communist Party leadership promised additional steps to support growth following a high-level meeting two weeks ago.
Economic growth fell to 7 per cent in the first quarter of the year, its lowest since 2009 in the aftermath of the global crisis.
The dismal trade performance raises the risk that second-quarter economic growth may dip below 7 per cent for the first time since the depths of the global financial crisis, adding to official fears of job losses and growing levels of bad debt. 
In an earlier report, the International Monetary Fund said China’s growth was expected to moderate to 6 per cent by 2017 and then stabilise around there.
“This is bad. I expect an interest rate cut this weekend,” said economist Tim Condon at ING in Singapore.
“This is going to make 7 per cent growth hard to attain. It looks like the weakness in the first quarter wasn’t transitory. It’s persistent.”
Alfred Schipke, a senior resident representative at the IMF in China, told a press briefing in Beijing on Friday that the IMF expected a gradual recovery of global growth.
“That means that export demand is likely to pick up. That’s good news for China. We are kind of confident that [China’s] export growth in 2015 will be stronger,” he said.
Chinese manufacturing suffered its sharpest contraction in a year in April, according to a survey by HSBC Corp. It said new orders and employment both declined.
Measures of employment have fallen to their lowest level since the crisis, according to Citigroup.
“Early signs of a job market slump may suggest the rising new economy, including services, is unable to fully offset job losses in traditional sectors,” said Citigroup economists in a report this week.
 Total imports and exports in the first four months of the year contracted by 7.6 per cent compared with a year earlier, according to customs data. 
That made it increasingly unlikely the ruling party could achieve its target of 6 per cent trade growth this year.
Measures imposed to cool an investment boom have cut demand for imported iron ore and other industrial raw materials. 
That has depressed revenues for commodity exporters such as Australia and Brazil.
“We expect negative export growth to prove short lived,” said Evans-Pritchard. “Meanwhile, although slowing investment growth will remain a drag, import growth should begin to recovery gradually.” 
Additional reporting by Reuters and Victoria Ruan
 


China’s imports, exports fall amid further signs of weakness in slowing economy

Containers at the Lianyungang port in Lianyungang, east China's Jiangsu. The poor export figures come after China recorded its slowest pace of economic growth in the first quarter in six years. Photo: AFP

The poor export figures come after China recorded its slowest pace of economic growth in the first quarter in six years. Photo: AFP

Downward pressure on China's economy 'increasing', admits Premier Li Keqiang

Chinese Premier Li Keqiang presides over a symposium on current economic situation in Beijing. Photo: Xinhua

China rolls out policies to create jobs amid slowing economy

People looking for work attend a jobs fair in Beijing. China's economy grew at its slowest pace in the first quarter of this year since 2009. Photo: Xinhua

Update | China’s imports, exports fall amid further signs of weakness in slowing economy

Many economists had expected a rise in the sale of goods overseas in April