In correlation with lethargic global demand and strong currency, Chinese exports fell 6.4 percent unexpectedly in April while imports also slumped by 16.2 percent, leading to calls for a fresh implementation of stimulus measures.
Falling below forecasted expectations, overseas shipments declined by 6.4 percent in dollar denominated terms from 15 percent in March.
Winding further downhill, imports faced their fourth straight double-digit decline of 16.2 percent from 12.7 the previous month, thus hiking the country's trade surplus to $34.1 billion from $3.1 billion in March.
“This is another pretty weak data point so far this year, so policy stimulus will continue for sure,” said experts who expect policymakers to tighten Monetary Policy once more in the upcoming months.
China has set a 6 percent growth target for trade this year up from the actual growth of 3.4 percent last year, due to frail economic data.
In an attempt to boost China’s slowing economy, regulators have previously cut taxes for outbound shipments, applied streamlined procedures and provided easier export rebates.
However, industrial profits, factory prices and the real-estate market continue to decline. According to experts, a notable improvements in the domestic and global economies isn't evident.
Chinese officials have been struggling to hold the country’s economy steady and strong demand in the US dollar is adding external pressure to the Chinese economy, which is already fighting challenges with rising labor costs and a strong yuan.
However, some exporters said they have not felt the impact of a rising yuan, thanks in part to the growing popularity of currency hedging options, reported Bloomberg.