If there was any doubt the Chinese economy is on the rise, then the November trade figures, especially the import data for major commodities in November should provide confirmation.
In fact the value of imports grew the fastest in more than two years, thanks to stronger demand and the fall in the value of the yuan in recent months against the greenback.
China’s National Statistics Bureau said yesterday that exports increased by 0.1% in US dollar terms, an improvement in the 7.3% decline in October and stronger than the 5.0% contraction expected by the market.
It was the first time since March this year that the value of exports increased in year-on-year terms.
In yuan-denominated terms, and reflective of the strength in the US dollar over the past year (and especially since Donald Trump’s election in November), the value of exports grew by a stronger 5.9%.
But imports were stronger, with the US dollar value of imports increasing by 6.7% from a year earlier, the fastest expansion reported since September 2014.
In yuan-denominated terms, that figure swelled to 13% over the same period.
In volume terms, copper, crude oil, iron ore and coal imports all surged.
Copper imports jumped to 380,000 tonnes, up from 290,000 tonnes in October, while crude oil imports surged to 32.35 million tonnes from 28.79 million tonnes reported previously.
Iron ore and coal imports increased to 91.98 and 26.97 million tonnes respectively, up from 80.8 and 21.58 million tonnes a month earlier.
China’s trade surplus narrowed to $US44.61 billion, down from $US49.06 billion in October and well over $US50 billion earlier in the year.
The import figures reflects the recovery in commodity prices seen in 2016, helping to stir inflationary pressures after years of disinflation and, in some instances, outright deflation.
November consumer and producer price inflation data will be released later today and will confirm that producer inflation is running at 2% or thereabouts, up from 1.2% in the year in October, and minus 5.8% a year or so ago.
