Import surge sends China trade to decade-deep deficit

Michelle Galanter Applebaum submits: Import Licenses Decline 14.9%June import licenses dropped 14.9% from May to 1,773,206 tonnes but remain more than double the level of a year ago.

China trade still faces uncertainties in 2013 BEIJING — China’s export growth rebounded surprisingly sharply to a seven-month high in December, a strong finish to the year after seven straight quarters of slowdown, but subdued global demand means that the spike may not herald an enduring recovery. Uncertain trade prospects contrast with data that showed resilient local loan demand, further evidence that the world’s second-largest economy rebounded towards 8% annual growth in the last quarter of 2012 on firming domestic demand.

The global economy took another turn for the worse as Japan plunged into recession following two consecutive quarters of growth. Please consider Japan’s economy shrinks annualized 3.5%. Japan’s economy shrank an annualised 3.5 per cent between July and September, the steepest decline since the earthquake-hit first quarter of 2011, as exporters suffered big falls in shipments to key markets such as China and Europe.

Inquiring minds are looking at charts from the New York Times that show U.S. Trade in 2012 Outpaced Many Other Countries.

WASHINGTON — The U.S. economy grew faster than initially thought in the third quarter, but the momentum is unlikely to be sustained as the nation braces for deep cuts in government spending and tax increases early next year. Gross domestic product expanded at a 2.7% annual rate, the Commerce Department said on Thursday, as faster inventory accumulation and export growth offset weak consumer spending and the first drop in business investment in more than a year.

Data over the weekend showed China’s trade balance plunged US$31.5 billion into the red in February as imports swamped exports

China's trade surplus hit a 3-year high this month as import growth plunged. That setup raises many questions. First, let's consider the initial story. Bloomberg reports China’s Import Growth Misses Estimates for June China’s imports rose less than anticipated in June, pushing the trade surplus to a three-year high and adding pressure on the government to support demand as the global economy slows.