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China trade rebounds on strong demand, weakening currency
[BEIJING] China's exports rebounded as demand held up and a cheaper yuan aided foreign purchasing.
Overseas shipments rose 5.9 per cent from a year earlier in November in yuan terms, the customs administration said Thursday. Imports jumped 13 per cent, leaving a trade surplus of 298.1 billion yuan (S$61.3 billion).
The currency has fallen 10 per cent against the dollar since a surprise devaluation in August 2015 while remaining stable recently against a basket of currencies. Exports stabilizing suggests demand remains intact for now as the world's largest exporter faces potential headwinds and policy uncertainty as Donald Trump prepares to take office Jan 20.
Exports are getting a lift from "likely improvement in global demand," Song Yu, the Beijing-based chief China economist at Beijing Gao Hua Securities Co, the mainland joint-venture partner of Goldman Sachs Group Inc, wrote in a recent note.