China trade slippage highlights growth deceleration risk

We learned today that China's trade volume unexpectedly 3.1% year-on-year in June with both imports and exports down. This unexpectedly weak data point highlights the risk of growth deceleration in emerging markets generally and China specifically.
Here is how HSBC reports the data release according to the Wall Street Journal:

The simultaneous decline of exports and imports underlines the weakness of both external and domestic demand conditions. The last time that both imports and exports contracted was in October 2009 (stripping out Chinese New Year distortions). The current downside pressures to growth seem to be even larger than the mid-year slowdown in 2012 (when export growth almost faltered and imports temporarily contracted)…Going forward, external headwinds will likely persist…Pol...


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