China exports show signs of stabilisation

There are signs that the global activity and trade cycle is gaining momentum,driven by the recovery in high income countries,and Chinas exporters are benefiting from that, Louis Kuijs,economist at RBS,said in a note.

The strong export figure comes as a boost after exports have been a drag on the economy so far this year,subtracting 1.7 per cent from growth in the first three quarters.

Weak global demand,a stronger yuan currency and rising labour costs have taken their toll on sales of Chinese goods abroad. But there are hopes of a sustained pick-up in global demand. Exports directly create about 30 million jobs and add another 100 million in related industries,according to official estimates.

Some economists noted,however,that the figures may have been influenced by hot money inflows disguised as trade deals,a problem that had distorted trade figures earlier in the year. On Saturday,Xinhua news agency reported that regulators would clamp down on banks and companies use of foreign currency for trade finance by ensuring that trade deals are authentic.

Chinas leaders want the traditional growth drivers of heavy investment and brisk export sales to make way for a more sustainable expansion in consumption.

Four separate purchasing managers indices last week had pointed to growth in the factory and services sectors,with export orders showing resilience.