MNI ANALYSIS: China February Exports and Imports Decline

     BEIJING (MNI) - China's exports plunged in February, more than expected by

most economists, while imports also dropped. 

     Exports fell 20.7% y/y to USD135.24 billion, a sharp drop from last month's

9.1% gain, worse than the -6.5% y/y forecast by an MNI survey. Total value for

the first two month amounted to USD353.22 billion, or dropped 4.6% from a year

earlier.

     The tumble was mainly due to the Chinese New Year holiday, which shuttered

factories and suspended shipments. Exports would have risen 1.5% discounting the

Chinese New Year effect, the customs said. 

     Exports to the U.S. registered the worst decline in at least 10 years, by

28.6% y/y at USD22.67 billion. Shipments to the EU and Japan, led by a weaker

demand, contracted as well but slower than the U.S., by 13.1% and 9.5%

respectively.

     China's steel product exports posted stronger performance, rising 12.9% y/y

in the first two months. On the other hand, traditional labor-intensive products

are losing their advantages with shipments falling 3.9% from a year earlier.

     --WEAK IMPORTS

     Imports fell for third straight month by 5.2% y/y in February, compared

with January's -1.5% y/y. Total imports value for the first two month amounted

to USD309.51 billion, or down 3.1% from a year earlier. Again the Chinese New

Year likely worsened already slowing domestic spending.

     Shipments from the U.S. were down 26.2% y/y, compared with a record decline

of 41.1% reported in January. 

     The EU was the biggest seller to China, USD16.93 billion, or 13% of the

total imports.

     The ASEAN, and Latin America have become an emerging market for China -

imports from the two amounted 21.5% of the total purchasing value.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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