China: decline in exports

The decline in Chinese exports was less than 3.1%, as of June, compared to the same period last year. This is the first negative figure from January 2012, a value that hinders the positive outlook of the Chinese government and that poses problems for the much-anticipated global recovery. Along with the decline in exports was also recorded a decrease in imports fell by 0.7% compared to those of 2012. The phenomenon of the descent of exports, in part, was also affected by the fraudulent conduct of false invoices for the previous period, a practice that has been heavily sanctioned by the new government, and that has forced exporters to produce a value that customs officers Chinese consider the most truthful picture of foreign trade. However this is not enough to justify the heavy decline, which was impacted by weak foreign demand caused by the global recession, the appreciation of the dollar, which has weighed on the export of raw materials, the strength of the yuan currency, which had an impact on ' export of finished products and the rising cost of labor in China, which is now forced to operate policies of relocation of production in areas where the labor market has lower costs. The comparison with the expected data is merciless, economists, in fact, had predicted an increase of 4% of exports and imports, even eight per cent. The scenario imagined was, therefore, an increase in the wealth of the country finally able to stimulate a market not yet fully exploited and that, in addition to being a factor in the overall growth of the Chinese economy, could mean a major factor in lowering of tensions through social stimulate consumption. This objective is vital to the new government, has not been reached even for the large flow of capital out of the country without help create investment, jobs and therefore wealth within China. The new executive must be recognized that it will accept a slower growth to the fight against social inequality and corruption, to encourage a policy of gradually more rights and guarantees in the workplace, but a decrease in the growth too high, forcing the executive Beijing to address the problems related to the protection of jobs, which is the first bulwark against social tensions. To do that Beijing should focus on those who are the most profitable markets for the Chinese production: the U.S., where exports fell by 5.4% and the area of ​​the European Union which has reduced imports from the PRC well eight point three percent. These values ​​tell how the policy too expansive and invasive Chinese production should be profoundly revised in a context of economic contraction, which are unlikely to allow some time for the performance of double-digit growth. To the new Chinese government will not be enough to address new and emerging markets, have not yet been able to fill the gap created by the Western countries, but will have to think seriously to exploit the huge domestic market, this time in a convinced and determined. The great liquidity provision may allow the Chinese state to withstand levels of lower growth, while achieving an economic policy can do to grow more evenly the social fabric of the country, thus rationalizing valuable resources.