Chinese export declines with import rates down 43.1%

China’s exports are reported to have fallen by a record rate in 13 years in January by 17.5 percent against the same period of the last year as a consequence of dropped demand in the U.S. and Europe. Imports, at the same time, fell by a record of fell 43.1 percent comparing to the corresponding period of 2007. Exports fell 17.4 percent to the European Union, and 9.8 percent to the U.S.

The crisis has already cost China $39.11 billion trade surplus, the jobs of 20 million migrant workers and growth may slide to 6.1 percent this quarter, the least since 1999, says Bloomberg News. 

Government researchers have found weakening the yuan against the dollar might support exports. On contrary, Isaac Meng, a senior economist at BNP Paribas SA in Beijing said rising protectionism such as a six-month ban on imports of Chinese toys imposed by India might make export recovery harder for the country. Some other analysts say, the government should cut the key one-year lending rate, cut taxes and distribute discount coupons in order to support spending. 

Besides, Tao Dong, chief Asia economist at Credit Suisse AG in Hong Kong, says surging bank lending, which rose to a record in January, gives China additional ammunition to fight the export fall.