Slowing Chinese trade raises concerns over economic recovery
13 Aug 2012
Chinese trade weakened dramatically in July, increasing fears that the world's second-largest economy was yet to rebound from its worst slowdown in years.
According to experts, there needed to be a rethink about China's ability to lead the world out of its financial difficulties.
Chinese exports were up a meager 1 per cent last month from a year earlier, down from an 11.3 per cent increase in June, even as imports were up 4.7 per cent in July, down from 6.3 per cent in the previous month. China's trade surplus fell to $25.1 billion in July from $31.7 billion in June.
The trade data announced on Friday comes a day following China reporting weakening of industrial production in July to 9.2 per cent year over year, its slowest pace in over three years. The weakening came largely due to slowing demand for steel, cement and automobiles.
Growth was also down in infrastructure and property investment, even as the central government initiated measures to stimulate the economy with a slew of new public works projects.
According to analysts, the government's efforts to support investment and growth had failed to deliver the desired results.
