Jason Douglas of The Wall Street Journal reports that the October decline suggests weak demand globally, increasing pressure on Beijing to increase stimulus. He writes:
China’s exports fell for the sixth straight month, adding to pressure on Beijing to boost spending at home as a big rise in global interest rates and wars in Ukraine and the Middle East weigh on the world economy.
The figures add to signs the Chinese economy is still facing difficulties despite a recent pickup in growth. Though officials have expanded stimulus in recent weeks, reflected in a rise in imports, economists say that Beijing will need to do more in the final months of the year to prevent another slowdown as a drawn-out property slump squeezes investment and consumer spending.
Chinese exports fell 6.4% in October compared with a year earlier, to $275 billion, China’s General Administration of Customs said Tuesday, a steeper decline than the 6.2% fall recorded in September. […]
Many economists expect yet more interest-rate cuts and government spending. Some advocate tax cuts or other direct financial help for households to fuel more consumer spending, though Beijing has so far shown little enthusiasm for such policies, believing they don’t deliver lasting benefits.
Economists at Capital Economics in a research note said they expect a slow rise in imports over the coming months as the domestic economy improves. They said exports are likely to continue to decline until around the middle of next year.
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