China's exports fall for first time in 7 years

BEIJING: China's exports fell in November for the first time in seven years as global demand weakened, data showed Wednesday, adding to pressure on Beijing to reverse a worsening economic slump.

November's trade surplus widened to a monthly record of $40.1 billion as exports fell by 2.2 percent from the year-earlier period and imports fell even faster, dropping by 17.9 percent, the customs agency reported.

The drop in trade was even sharper than most analysts expected and adds to pressure on Beijing, which is trying to insulate China from the global slowdown with a multibillion-dollar stimulus package to boost domestic spending.

``As external demand continues to weaken it is becoming all the more important for the government to enact measures to rebalance the drivers of growth,'' said Jing Ulrich, JP Morgan's chairwoman of China equities, in a report.

The government unveiled a multibillion-dollar stimulus package November 9 after China's growth rate fell to 9 percent in the last quarter, down from 11.9 percent last year.

Chinese exporters have been hammered by a drop in foreign demand, leading to factory closures and layoffs. Communist leaders worry that more job losses might fuel unrest and are pressing companies to minimize staff cuts.

The sharp drop in imports could be especially worrisome for Chinese planners, reflecting a slowdown in domestic demand just as they are trying to encourage the country's own consumers to spend more.

The government usually issues monthly customs data in the morning, but took the unusual step of delaying Wednesday's announcement until late afternoon, possibly waiting for Chinese financial markets to close to avoid dragging down share prices with the bad news. The Shanghai Composite index rose 2 percent to 2,079.12.

November's exports fell to $114.9 billion, while imports dropped to $91.3 billion, the customs agency reported. It was the first time China's exports have fallen since June 2001, according to the official Xinhua News Agency.