China’s Commerce Ministry issued a statement today saying that the country faces “severe challenges” as exports fall due to faltering demand in the U.S. and Europe. It is expected that November’s export totals will be down significantly from the previous year.
The outlook remains poor considering that the U.S. and Europe account for 40% of China’s exports. Both regions – particularly the Eurozone – are expected to continue to struggle with debt and weak output into 2012.
“There is a lot of concern in Beijing about weakening demand from the developed world, especially from Europe,” said Michael Pettis, economics professor at Peking University. “China is still overly reliant on domestic investment and net exports to generate growth”.
Source: BBC News
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