Investing.com - China’s exports shrank the most in two years in December, data on Monday showed.
Exports in December unexpectedly fell 4.4% from a year earlier, while imports also fell 7.6%, the biggest drop since July 2016.
Meanwhile, Chinese exports to the U.S. slid 3.5% in December while its imports from the U.S. were down 35.8% for the month.
"Export growth dropped more than anticipated as global growth softened and the drag from U.S. tariffs intensified. Import growth also fell sharply in the face of cooling domestic demand. We expect both to remain weak in the coming quarters," Capital Economics said in a note.
"Meanwhile, with policy easing unlikely to put a floor beneath domestic economic activity until the second half of this year, import growth is likely to remain subdued,” it added.
China’s trade surplus with the U.S. grew 17% from a year ago to hit $323.32 billion in 2018, the data showed. According to Reuters, that’s the highest on record dating back to 2006. Still, the overall Chinese trade surplus last year was the lowest since 2013, the news agency reported.
Citing unnamed sources, Reuters said last week that Beijing is planning to lower its economic growth target to 6-6.5% in 2019, the slowest pace in 28 years.