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China's Imports Drop 20% Explaining PBoC Action; China Watchers Clueless

China's trade report this weekend was dismal. Exports dropped 3.3% vs. economists' consensus of a 6.3% increase from last year. That is a 10% miss, demonstrating that the global community of professional China watchers does not have a clue about the nation's trade dynamics. This is quite unsettling, given the importance of China to global growth.

A great deal of this weakness in exports was due to softer demand from the eurozone and especially from Asia.

Reuters: - ... the data showed that while exports to the United States rose by 4.8 percent year-on-year to $35 billion, exports to the European Union slid 4.6 percent to $33 billion in the same period.

Exports to Hong Kong, South Korea and Japan were also down, with exports to Japan slumping over 20 percent.

But the real shocker came from the nation's import figures. Imports dropped by 20% from last year as… Read More …