Mainland Exports Hit Two-year Low In December

The mainland has posted the biggest monthly drop in exports in two years, pointing to further weakness in the country's economy and falling global demand.

Official data also showed Beijing posted a record trade surplus with Washington last year, which could prompt President Donald Trump to turn up the heat in the two countries' bitter trade dispute.

Total outbound shipment unexpectedly fell 4.4 percent in December from a year earlier, with demand from most of its major markets weakening.

Imports also saw a shock drop, plunging 7.6 percent – the biggest decline since July 2016.

The dismal trade figures, along with several months of falling factory orders, suggest a further weakening in mainland exports in the near term.

Some analysts now say Beijing may have to intensify its policy easing and stimulus measures this year, to soften the blow from the trade war with the United States.

December's reading reflected an end to exporters rushing to meet US orders, ahead of additional tariffs and the start of payback effects.

Exports to the US dropped 3.5 percent in December while imports from America were down 35.8 percent for the month.

But its trade surplus with the US widened by 17.2 percent to more than US$323 billion for the whole of last year, the highest on record going back to 2006.

The large annual trade surplus has long been a sore point with Washington, which has demanded that Beijing take steps to sharply reduce it.

And thanks to surprisingly resilient trade data for much of 2018, overall exports rose 9.9 percent for the full year, its strongest performance in seven years, while imports increased 15.8 percent.

That resulted in a trade surplus of more than US$351 billion, the country's lowest since 2013.