China's exports see sharp decline

BBC ^ | 11 September 2009

[traumer]

China's exports continued to decline in August, down 23% from the same month last year.

Official figures show exports fell to $103.7bn, from $134.9bn in August 2008. Exports of almost all major industrial products saw double-digit drops.

The trade surplus fell 45% from August 2008 to $15.7bn, but was up from July.

Recent signs that recession has ended in some major economies, including China's major trading partner Japan, suggest that exports may pick up again.

But separately, Japan's economy grew 0.6% in the third quarter from the previous three months, less than the 0.9% originally estimated.

This was due to fewer private-sector inventories than previously estimated, Japan's finance ministry said.

Japan is the world's second-largest economy.

'Not yet steady'

The Chinese export figures were worse than expected by economists.

So far this year, China's total trade with the US fell 16.4% and its trade with Japan fell 22%.

Trade with the European Union dropped nearly 21%, the government said.

"The stabilisation and recovery of the Chinese economy is not yet steady, solid and balanced," Premier Wen Jiabao said on Thursday.

"Some of the stimulus measures will see their effect wane, and it will take time before those long-term policies show effect."

China, which is targeting 8% economic growth this year after 10% annual growth over the past few years, has relied on its $586bn stimulus plan to boost spending this year.

[moose2004]

“China, which is targeting 8% economic growth this year after 10% annual growth over the past few years, has relied on its $586bn stimulus plan to boost spending this year.”

By buying our massive debt the chinese are doing all they can to artificially prop up our economy and hopefully jump start our imports of their manufactured products. In essence they are financing our purchases. How long can this madness go on?