MNI 5 THINGS: China December Trade Fizzles; Surplus Higher

     BEIJING (MNI) - China's trade slowed in December, having been on the fast

track for years, with both imports and exports seemingly discouraged by the

ongoing trade dispute with the U.S. 

     A slowing economy and retaliatory tariffs on goods including soybeans,

along with declining commodity prices further weakened imports. Below are five

highlights from the data released on Monday by China's customs agency:

     - Exports fell 4.4% y/y to $351.76 billion, dropping dramatically from the

5.4% gain recorded last month, and also far below the +4.8% median of an MNI

survey. The monthly figure was lowest not only in calendar year 2018, but also

the lowest in two years. Exports for the whole year increased by 9.9% y/y to

$2.49 trillion.

     - Imports plunged 7.6% y/y to $164.19 billion, ending a run of 25

consecutive months of gains, and marking the lowest since July 2016. The data

was well below expectations, as an MNI survey saw consensus at 8.0%. Imports for

2018 were USD2.14 trillion, 15.8% higher than a year ago.

     - The trade surplus expanded to $57.06 billion from $44.75 billion in

November, the most this year. The year-to-date surplus was the smallest in five

years at $351.76 billion. 

- Exports to the U.S. decreased by 3.5% y/y to $40.28 billion. Imports from the

U.S. fell further by 35.8% y/y to $10.41 billion. The surplus narrowed to $29.87

billion from $35.55 billion in November, the smallest in five months.

     - Exports to the EU and Japan fell by 0.3% y/y and 1.0% y/y respectively,

while imports fell by 2.7% y/y and 11.4% y/y, reflecting weak demand both

overseas and domestically.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

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