February marks end of Shanghai`s 14 months export growth

SHANGHAI`s February export value dropped 36.3 per cent from January and fell 5.2 per cent year on year to US$25.5 billion, marking the end of a 14-month growth streak, reports Xinhua.

According to Shanghai Customs, the sharp increase in the cost of raw materials and labour as well as the continuous appreciation of the yuan has also been reasons for the fall, quite apart from the impact of the Chinese New Year holiday.


In the first two months, Shanghai`s processing trade grew 9.1 per cent year on year to $37.3 billion. Exports increased 8.4 per cent to $26.4 billion, 5.8 per cent slower than the growth of the city`s export value total.


Imports went up 11 per cent to $10.9 billion, 19.4 per cent lower than the city`s import total. The weak performance indicates that overseas demand has slackened, and China is losing its exporting edge as neighbouring developing countries become more robust.


Shanghai`s trade with the top three markets of Europe, US and Japan continued to fall as a percentage of the city` total, down to 50.6 per cent in the first two months. The city`s trade with Europe increased 9.5 per cent to $23.2 billion. Trade with US increased 15.1 per cent to $17.4 billion. Trade with Japan grew 25.1 per cent to $14.6 billion. Growth rates were much slower than trade with new markets like Latin America, ASEAN and Korea.


Shanghai foreign trade in the first two months totalled $109 billion, up 19.9 per cent year on year but dropped 15.1 per cent over January. Exports grew 14.2 per cent to $65.4 billion. Imports increased 29.4 per cent to $43.7 billion.


In February, Shanghai imports rose 16.2 per cent year on year, but fell 26.6 over January to $18.5 billion.


The rapid growth in import value is mainly the results of the price of hikes in bulk cargo. Nine categories of bulk imports recorded a value of $7.6 billion in the first two months, up 37.2 per cent year on year.


Being China`s largest foreign trade port, Shanghai`s annual trade value takes up 25 per cent the national total.