Export slump increases pressure on Chinese government

The decline in China’s exports accelerated in February as a slump in global demand worsened, adding to pressure on Beijing to pump up the world’s third-largest economy with its massive stimulus plan and avert more job losses.

Exports plunged 25.7% from a year earlier in February, compared with January’s 17.5% fall, the Chinese customs agency said today.

Imports fell 24.1% – smaller than January’s stunning 43% plunge but still a blow to China’s trading partners.

The export decline increases pressure on Beijing to reduce reliance on trade by boosting domestic demand with its 4 trillion yuan (€463bn) stimulus package.

The Chinese commerce minister, Chen Deming, warned yesterday that the slump is unlikely to end soon, saying trade will be a “grim picture” in coming months.

The collapse in global demand for Chinese toys, shoes and other goods has prompted thousands of factories to close and thrown 20 million migrants out of work.

Communist leaders worry that more job losses could lead to unrest and are promising to spend heavily to create employment.

China’s global exports fell to $64.8bn (€51.2bn) in February while imports dropped to $60bn (€47.5bn).

That narrowed its politically sensitive trade gap to 4.8 billion US dollars, down sharply from January’s 39.1 billion US dollars level.