Chinese imports continue free fall

Imports to the second largest economy in the world dropped 17.7 percent in September compared to the same month a year ago and have now fallen for 11 consecutive months.    Imports to China continued their free fall in September, dropping 17.7 percent in yuan terms compared to the same month a year ago, according to the country’s customs administration. In U.S. dollar terms, imports fell 20.4 percent compared with September 2014.
   China’s imports have now fallen for eleven consecutive months as the economic slow down has lowered domestic demand for foreign products and lower commodity prices have made those products cheaper to import.
   Imports to the second largest economy in the world fell 14.3 percent in yuan terms in August, and analysts don’t expect a turnaround any time soon.
   “We anticipate further headwinds in the coming months,” Tao Dong, chief regional economist for Asia excluding Japan at Credit Suisse Group AG in Hong Kong told Bloomberg News. “Our model suggests that global industrial production will lose further momentum. Not only China but emerging market countries are also struggling with domestic demand.”
   Exports from China, although still in decline, fared much better in September, falling 1.1 percent in yuan terms or 3.7 percent in dollar terms compared to last year. Exports dropped 6.1 percent year-over-year in August.
   The relative improvement in export decline suggests the devaluation of the yuan in August may be increasing the competitiveness of Chinese products abroad despite high volatility in global markets.
   Shipments to the United States, for example, grew 6.7 percent in September in dollar terms, reaching their highest level as a percentage of overall shipments since August 2010.