Here’s What August’s Export Data Means for the Chinese Economy
The Chinese economy is set to benefit from rising demand in the United States and other export markets, The Wall Street Journal reports. According to recently released data, both imports and exports in China rose 7 percent in August from their values one year ago. This represents a rise in exports– which, just two months ago, were below 2012 levels– and a slight drop in imports compared to the previous month’s contrast with 2012 levels.
Although some have questioned data compiled by the Chinese government in the past, many believe that the increased exporting in August is a result of an economic turnaround in the United States and other countries to whom China actively exports. The report has led to Chinese government to reiterate its goal of 7.5 percent growth in GDP for the year of 2013, something which most analysts believe to be feasible.
Despite concerns over the impact of the tapering of U.S. quantitative easing on emerging countries, China has so far managed to weather the storm with the Yuan still rising against the dollar so far this year. This stands in sharp contrast to countries such as India where the Rupee has lost considerable value recently. Even if China has not been adversely affected by quantitative easing’s tapering, they have certainly shown signs of concern, having contributed $41 billion to a fund designed to stabilize currency markets among the BRICS nations.