China imports up the most in five months in December

China's imports were up the most in five months to December, indicating that domestic demand would be supported by economic growth, as the government claimed the title of the world's biggest trader of goods.

Inbound shipments rose 8.3 per cent from a year earlier, according to the customs administration, while exports increased 4.3 per cent, a pace that might be distorted by fake invoices. The trade surplus stood at $25.6 billion.

Improving demand would help support expansion even as rising domestic debt posed risks as also the impact of president Xi Jinping's broadest policy reforms since the 1990s posed risks. Even as China claimed to have become the top trading nation surpassing the US in 2013, the government highlighted challenges for exporters, including gains in the yuan and increased costs of labour.

Bloomberg quoted Dariusz Kowalczyk, senior economist and strategist at Credit Agricole CIB in Hong Kong, as saying that domestic demand was not as soft as had been feared and the Chinese economy, while decelerating was not likely to see a sharp slowdown.

According to Kowalczyk though, today's figures ''should be interpreted cautiously as they look much different after seasonal adjustment.'' 

China's exports and imports value totalled $4.16 trillion last year, recording an increase of 7.6 per cent from the previous year. According to customs spokesman Zheng Yuesheng, this was the first time the total value exceeded the $4 trillion-mark.

He also noted that China's external trade environment would improve in 2014 with the strengthening of the global recovery.

The latest purchasing managers' surveys showed that manufacturing and non-manufacturing sector growth in the country slowed. Taken together, the indicators suggested that the recovery of the world's second largest economy was yet to gain a firm footing.

Chinese leaders had pledged to achieve a "reasonable" growth for the economy in 2014 even as they pressed ahead with the economic reforms.

The Chinese economy expanded 7.8 per cent in the third quarter, the fastest pace in 2013, according to October government data. The statistical office is set to release the fourth quarter GDP data on 20 January.