huangthomas

China’s Exports Contracted in November

Three days ago, I found a news in Chinese official web page referring to the contraction of export in November. I pursue the story, but the link went nowhere. This usually indicates to me that the accurate figures are not available or someone has sensored the story. Therefore we can only peek into the story indirectly.

China is the largest trading partner of Taiwan. The export from Taiwan to China is mainly electronic components to be assembled in China and re-exported to the rest of the world. The export from Taiwan to China contracted 38.5% for the latest 3-month period. The figures indicate there is a rapid contraction of export and GDP growth. Slow release of real figures or intentional leaks is to buffer the shock effects of the news. By the time the real figures are released, the shock effects will be gone.

China is trying to sooth the impact of economic downturn by Supporting stock market, credit for purchasing electric appliances.......etc. The effect of $600 billion stimulus package will not be felt for sometime.