MNI DATA IMPACT: China Exports Improve, Imports Weaken(Update)

--Adds Comment by Ex-Stats Official in Second Paragraph

     BEIJING (MNI) - China's exports decline eased in October from September,

while imports dropped further due to weak domestic demand, the latest data

released by the General Administration of Customs on Friday showed.

     "Consumption is still dropping, and it can't be offset by boosting

investment alone," which is also weak with business profits declining, Xu

Xianchun, a former deputy director of the National Bureau of Statistics, told

MNI. The government will need to use various policy tools next year, he said. 

     Here are the key points from the customs data released today:

     - Exports fell 0.9% y/y to $212.90 billion, easing from last month's 3.2%

y/y drop. It was the first improvement in the last three months. Exports in the

first 10 month shrank 0.2% from last year.

     - Imports dropped for the sixth straight month by 6.4% y/y to $170.12

billion, slower than the 8.5% y/y fall recorded in September. Imports in Jan-Oct

were down 5.1% y/y.

     - Trade surplus expanded to $42.81 billion from $39.65 billion in the

previous month, rounding the year-to-date total to $340.29 billion.

- Exports to the U.S. fell 16.2% y/y following a 21.9% drop in September, while

imports were down 14.4%, recovering from last month's 15.7% y/y fall. Exports to

the EU rose by 3.1% y/y compared with a 0.1% gain in September. Imports from the

EU were down 13.9% y/y, following September's 6.5% y/y drop. 

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

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