China’s trade performance remained weak in November, with exports falling by a more-than-expected 6.8 per cent from a year earlier. Imports fell 8.7 per cent. The country will have to do more to stimulate domestic demand given persistent weakness in overseas markets. China’s trade performance remains weak as the trade value is likely to drop 8 per cent for the whole of 2015 versus an increase of 3.7 per cent in 2014. This clearly reflects a de-leveraging process in the manufacturing sector that has dragged down the demand for commodities.

Economic growth dipped to 6.9 per cent in the third quarter, dropping below the seven per cent mark for the first time since the global financial crisis. China has allowed its currency, the yuan, to slowly weaken to near four-month lows against the dollar, but its exports will be significantly helped only by a drastic devaluation.

A number of policies were announced last month to encourage foreign trade and help exporters, admitting that the picture for foreign trade was complicated and grim. The central bank has already cut interest rates six times since last November and reduced the amount of cash that banks must set aside as reserves while the government has eased restrictions on home buying to boost the sluggish property market and is trying to ramp up infrastructure spending.