China’s growth slows down amid global turmoil

The global reach of the economic turmoil in Europe and the US was reflected today in the weaker-than-expected export data from China as also an International Monetary Fund (IMF) warning that Asia could suffer ''clear'' financial and economic spillovers if the US and European troubles grew.

Trade data from China for September, released by the customs office, showed that the country's booming pace of export growth had begun to ease with the global upheaval and a gradual rise in the value of the renminbi taking their  toll.

However, the growth in both exports and imports remained solid last month, up 17.1 per cent and 20.9 per cent, respectively, as against the levels of a year earlier.

Though the trade surplus shrunk to $14.5 billion in September, from $17.8 billion in August, this was not likely to defuse fully the criticism of US lawmakers who argue that Beijing was holding the yuan unfairly low against the dollar.

Although the Chinese economy was following a rather muted growth trajectory, many economists say China was headed for a gradual slowdown, rather than a sharp, shocking halt.

The September trade figures failed to come up to economists' expectations and represented a marked slowdown from August, when exports rose 24.5 per cent and imports 30.2 per cent.