• 19.3% growth in imports in June compared to 28.4% in May
• Crude oil imports fell 11.5% compared to June, 2010
• But, consumer prices continue to rise
China’s trade figures for June reveal that the world’s second largest economy is beginning to slow down, while inflation remains stubbornly high.
In June, China’s imports increased 19.3% compared to a year ago, a strong showing, but woefully short of the 28.4% growth seen in May.
The weaker imports are yet another variable suggesting the world’s fastest growing economy may be slowing down. Another sign was the slowing of key commodity imports such as crude oil, aluminium and iron ore, which suggest a slowdown in industrial activity.
Crude oil imports fell to the lowest level in eight months and were down 11.5% from the same month a year earlier, while copper imports were also down compared to a year ago, even after a rebound in June.
The economic slowdown may be a result of the Chinese government’s attempts to apply gentle brake pressure on the country’s growth in order to bring down stubbornly high inflation.
Consumer prices in June rose 6.4% compared to a year earlier, suggesting that the slowing economy may not be affecting inflation, which will put Beijing in a difficult position.
