China exports fall for fifth month, import slump continues

China's manufacturing conditions slipped to the weakest level in more than three years. Photo: AP

China's exports fell for a fifth month and a slump in imports extended to a record 13 months as trade slows along with the world's second-largest economy.

Overseas shipments dropped 3.7 percent in November in yuan terms from a year earlier, the customs administration said Tuesday. That compared to the 3.6 percent fall in October. Imports declined 5.6 percent in yuan terms, leaving a trade surplus of 343.1 billion yuan ($US53.5 billion).

With sluggish trade combining with slowing residential construction, policy makers may need to keep their foot on the gas even after six interest rate cuts and expedited fiscal spending. The import slowdown is also a drag on other nations as China's flagging industrial plants need less raw materials while robust consumer demand hasn't picked up fast enough to offset those declines.

"Global demand is staying around the bottom, just like China's domestic economy," said Hu Yuexiao, an economist at Shanghai Securities Co. "We will still see tepid trade next year with a big trade surplus."

The trade data comes after a report last week showed China's manufacturing conditions slipped to the weakest level in more than three years. Inflation data Wednesday is forecast to show consumer prices grew about half as quickly as the central bank targets and producer price deflation deepened in November.

"Given the weak global growth and falling commodity prices, China's trade outlook remains challenging," Larry Hu, Head of China Economics at Macquarie Securities in Hong Kong, wrote in a report ahead of the release.