China
faces "severe challenges" to its exports due to economic difficulties
in key Western markets, the country's commerce ministry has warned.
Data due to be released on Saturday will show a sharp slowdown in export
growth in November, the ministry said.Sales to Europe and the US, which comprise about 40% of total exports, were not expected to recover next year.
The ministry said China
would instead target exports to developing markets in Asia and Latin America.
Weaker manufacturing
China will also try to
boost its imports from the West, the ministry said, in order to help support
their economies and to balance out China's trade surplus.Exports to the European Union fell 9% in October versus a year ago, and exports to the US fell 5%.
The country's total exports, however, were still up 15.9%, thanks in part to booming demand from Latin America.
But it was the weakest annual growth rate in two years, and exports were sharply down compared with a month earlier.
Imports were also down, although a large part of these include parts and materials for assembly in China and onward export.
The poor performance was mirrored by a recent manufacturing survey, which indicated that the sector contracted in November for the first time since the 2008-09 Western recession.
The commerce ministry also blamed rising wages in China for hurting its trade competitiveness.
Possible resistance
"Next year, I think that we will face severe challenges in our exports
and imports," said Foreign Trade Director Wang Shouwen."There won't be fundamental improvement in Europe or the United States, and costs at home will stay as high as this year, so the foreign trade situation will be severe next year.
"However, some developing and emerging economies are enjoying sound economic performances, so we will attach more importance to exports to these countries."
China's plan to focus on developing markets may meet with resistance.
Recent data showed that Brazil's economic growth had slowed to a standstill.
The country - Latin America's biggest - has previously complained about the threat to its own export competitiveness posed by the weakness of Western currencies.
Meanwhile in India, the mood may be turning against opening up the country's economy to foreign competitors.
The government suspended plans to let global supermarkets compete in the country, following political uproar and public protests.
