# China Nov export growth slows but imports accelerate Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-12-07 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: China Exports Growth Slows in November Amid Rising Costs Meta Description: China's exports growth lost steam due to strong yuan, lower demand, and high costs. Imports surged, especially coal. Analysts predict further policy URL: https://financedigest.com/china-nov-export-growth-slows-but-imports-acceleratehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-12-07t031248z1lynxmpehb603mrtroptp4china-economy-trade-1-1736836709908-compressed.jpg) BEIJING (Reuters) -China’s exports growth lost steam in November, pressured by a strong yuan, weakening demand and higher costs, but imports accelerated and came in well above expectations as the country scrambled to restock key commodities like coal. Exports rose 22% on-the-year and imports jumped 31.7% in November, customs data showed on Tuesday. Analysts in a Reuters poll had forecast November exports would increase 19.0% after jumping 27.1% the previous month. Imports were forecast to have risen 19.8%, according to the poll, versus a 20.6% gain in October. [China’s coal imports in November hit](https://www.financedigest.com/asia-shares-weigh-china-risks-yen-hits-6-month-high.html "Asia shares weigh China risks, yen hits 6-month high") their highest level in 2021, as the world’s biggest consumer of the dirty fuel scrambled during the onset of winter to feed its power system, which had been experiencing shortages. The easing of the [power crunch](https://www.financedigest.com/belgium-supports-energy-price-caps-suspending-trading-in-eu-power-crunch.html "Belgium supports energy price caps, suspending trading in EU power crunch") also helped increase demand for copper. Imports of the key industrial metal [hit their highest levels since March](https://www.financedigest.com/u-s-oil-exports-to-europe-hit-record-in-march-on-steep-discounts.html "U.S. oil exports to Europe hit record in March on steep discounts"). Higher imports were likely more [driven by the scramble for coal and restocking of iron ore and crude oil than a broader uplift in domestic demand](https://www.financedigest.com/turkeys-economy-grew-7-6-in-q2-driven-by-domestic-demand-exports.html "Turkey’s economy grew 7.6% in Q2 driven by domestic demand, exports"), said Ting Lu, Chief China Economist at Nomura. China [posted a trade surplus of $71.72 billion](https://www.financedigest.com/french-asset-manager-amundi-posts-q3-outflows-of-13-billion.html "French asset manager Amundi posts Q3 outflows of billion") last month, compared with the poll’s forecast for a $82.75 billion surplus. [China reported](https://www.financedigest.com/worst-flooding-since-1998-leaves-33bn-economic-toll-in-china-according-to-aon-catastrophe-report.html "Worst flooding since 1998 leaves bn economic toll in China, according to Aon catastrophe report") an $84.54 billion surplus in October. The data comes a day after China’s central bank announced a cut to the amount of cash that banks must hold in reserve, its second such move this year, to bolster slowing [economic growth](https://www.financedigest.com/addressing-the-credit-gap-to-unlock-economic-growth-in-africa.html "Addressing the credit gap to unlock economic growth in Africa"). The [country has staged an impressive rebound from the pandemic](https://www.financedigest.com/as-who-pandemic-pact-talks-begin-poor-countries-on-back-foot.html "As WHO pandemic pact talks begin, poor countries on back foot") but there are signs momentum is flagging. Power shortages, regulatory crackdowns and [debt troubles in the property sector are weighing on China’s](https://www.financedigest.com/analysis-no-china-no-deal-bid-to-break-sovereign-debt-logjams-gets-weary-thumbs-up.html "Analysis-No China, no deal: Bid to break sovereign debt logjams gets weary thumbs up") recovery. Analysts expect more [supportive policy measures](https://www.financedigest.com/new-office-expansion-enables-vaisala-to-accelerate-growth-in-industrial-and-environmental-measurements-businesses-professional-services-and-customer-support-the-new-office-will-cater-for-all-vaisala.html "New office expansion enables Vaisala to accelerate growth in industrial and environmental measurements businesses, professional services and customer support. The new office will cater for all Vaisala’s customers in the Latin America region.") in the coming months. A private sector survey showed [factory activity](https://www.financedigest.com/asias-factory-activity-contracts-despite-chinas-covid-reopening.html "Asia’s factory activity contracts despite China’s COVID reopening") fell in November, hit by higher prices and subdued demand. An official survey showed [factory activity grew that month](https://www.financedigest.com/uk-factories-suffer-worst-month-since-may-2020-as-economy-stumbles-pmi.html "UK factories suffer worst month since May 2020 as economy stumbles – PMI"), however. China’s [factory gate inflation hit](https://www.financedigest.com/nestle-closes-french-buitoni-factory-hit-by-e-coli-outbreak.html "Nestle closes French Buitoni factory hit by E.coli outbreak") a 26-year high in October as coal prices soared amid a power crunch in the country’s industrial heartland. No cases of the Omicron COVID-19 variant have been reported in China to date, but its emergence could add pressure to the strict zero-tolerance [policy on coronavirus cases and increase logistical challenges for exporters](https://www.financedigest.com/dutch-responds-to-us-china-policy-with-a-plan-to-curb-semiconductor-tech-exports.html "Dutch responds to US China policy with a plan to curb semiconductor tech exports"), say analysts. China reported 94 new confirmed [coronavirus cases](https://www.financedigest.com/u-s-coronavirus-cases-hit-new-high-hospitalizations-creep-up.html "U.S. coronavirus cases hit new high, hospitalizations creep up") for Dec. 6, with locally transmitted infections in Inner Mongolia, Heilongjiang, Yunnan and Zhejiang. (Reporting by Gabriel Crossley and Albee Zhang; Editing by Sam Holmes) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---