China’s export growth nose-dives in July

China's export and import growths tumbled in July indicating the weakness in global economy triggered by the eurozone debt crisis, urging the need for more concrete measures by the country's government to stimulate growth in the world's second-largest economy.

Exports increased by a mere 1 per cent in July compared with last year, the weakest growth since 2009, and well below analysts' expectations of around 8 per cent, according to data released yesterday by the customs office.  In June, outbound shipments had registered a healthy growth of 11.3 per cent.

Imports grew 4.7 per cent for the month over a year ago, compared with 6.3 per cent in June. Trade surplus dropped to $25.1 billion in July from $31.5 billion last year.

Exports to the European Union, the country's largest trading partner, dropped 16.2 per cent in July due to deepening of the eurozone's sovereign debt crisis, while exports to the US, the second largest trading partner, slowed to less than 1 per cent from 10.6 per cent in June.

Nevertheless, the country is confident of meeting the trade growth target of 10 per cent for the current year, according to Gao Hucheng, vice commerce minister.

According the Chinese central bank, new yuan lending in July was also down at 540 billion ($85 billion), way below the 920 billion yuan in June and lower than analysts' expectations.