BEIJING, Oct 17 (Reuters) - China's exporters face a
difficult time in coming months as demand from emerging markets
slows, the Chinese trade ministry warned on Thursday after the
latest trade data showed sales to Southeast Asia slowed sharply
But China is ready to take measures to support its exporters
to ensure the trade sector grows 8 percent this year as
targeted, Commerce Ministry Spokesman Shen Danyang said,
allowing exporters to see "mild growth" in the next few months.
"Although developed countries showed signs of recovery in
recent months, some emerging economies are starting to lose
growth momentum," Shen told a press briefing.
"Many risks, such as capital outflows, currency depreciation
and rising inflation pressures also exacerbate the economic
slowdown in emerging countries," he said.
The comments follow disappointing trade figures for
September released at the weekend, which showed China's exports
falling 0.3 percent, in stark contrast to market expectations
for a 6 percent rise.
Sales to Southeast Asia were especially weak, with growth in
September falling to a 17-month low of 10 percent from 31
percent the previous month.
Analysts say fears of possible U.S. monetary policy
tightening has hurt demand for Chinese goods as investors
withdrew their money from emerging Asian economies -- China's
fastest-growing export market for the past year.
Yet China has been an anomaly among emerging nations as
investors retreat from riskier markets. Not only has China not
seen an exodus of capital, it is instead fighting rising
China's central bank warned this week that rising capital
inflows are fuelling the rate of credit expansion in the world's
No. 2 economy, and that authorities would fine-tune policy to
keep liquidity at appropriate levels.
That capital is still flowing steadily into China was
underscored by data on Thursday that showed foreign direct
investment (FDI) in September rising 4.9 percent from a year ago
to $8.8 billion, holding within a steady range seen this year.
That took the total amount of FDI that China drew in the first
nine months to $88.6 billion.
In a reflection of the global slowdown in the export sector,
investors are shifting in favour of the services industry, the
Commerce Ministry said.
FDI in the service sector rose 13.3 percent between January
and September to $44.7 billion from the same period a year ago,
accounting for 50.5 percent of total FDI.
In contrast, manufacturing investment dropped 4 percent over
the same period to $35.5 billion, taking up only 40 percent of
total FDI flows.
Asian investors were responsible for the bulk of the FDI,
with the top Asian 10 nations accounting for 86 percent of total
FDI in the first nine months, far outstripping U.S. firms, which
accounted for 3.3 percent.
European firms were responsible for 6.7 percent of Chinese
In the first nine months, China's outbound direct investment
by non-financial firms rose 17.4 percent from the same period of
a year ago to $61.6 billion, the ministry said.
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