China warned Wednesday a "grim" outlook after a surprise fall in June exports of fresh concerns about the world's second-largest economy slowed to enhance and increase the degree of government pressure for action.
China's reform-minded new leader has shown slower growth tolerance, while stepping up efforts to restructure the economy in the long run, but any economic performance continues to decline may test their resolve.
Complaints yuan stronger currency and the possibility of unemployment in China Premier Li Keqiang said on Tuesday that he realized that economic risk bets.
"Macro-control should be based on current conditions, focusing on the future, in order to ensure economic growth and employment levels are not sliding lower and lower prices for consumers not exceed the cap," he was quoted by the official Xinhua News Agency as saying that during his visit, the southern province of Guangxi.
"We have to focus more on structural adjustment and reform, and promote economic restructuring and upgrading."
Predicting an increase of 4%, exports fell 3.1% in June, said on Monday, as has already been set to show weak demand dents factory output and investment growth will slow to 7.5% in the second quarter growth figures cast a shadow.
Nomura (Nomura) in Hong Kong, said Zhang Zhiwei, chief China economist, "weak trade data bring further downside risks, in June and the second quarter growth figures, and help strengthen our attention, in the second half risk. "
"With the macro data further weakness next week will test time for the government to disclose how much economic growth slowed in the end is willing to tolerate," he said in a report.
The decline in exports since January 2012 for the first time. Imports fell by 0.7%, while expected to rise 8%, while China's trade surplus was $ 27.1 billion, the customs authorities said, in the $ 27.0 one billion expected.
The Australian dollar fell to about one-third of the data, a single cent, reflecting the fear that China's demand for Australian commodities such as iron ore and coal.
Morgan Stanley Asia-Pacific (excluding Japan) Index MIAPJ0000PUS return to standing rose 0.77 percent in late trading from one week highs before they came to the dip after trade figures.
June export figures after the government against the use of false invoices, inflated exports earlier this year, and now may reflect the real trade picture, customs officials said.
However, the external environment remains weak and rising labor costs and the appreciation of the RMB currency, does not encourage exporters, Customs said.
"China trade is currently facing tough challenges," the spokesman Zheng Du Yuesheng told a news conference. "In the third quarter, exports appear to be severe."
Products exported to the United States, China's largest export market, fell in June to 5.4%, while exports to the EU fell 8.3%.
Exporters endured
Most economists have lowered the 2013 growth, but to meet the government's target of 7.5%.
At the same time, exporters say they feel some pain, but under false pretenses.
Ningbo Cixi Import and Export Trading Company Limited in China's eastern Zhejiang Province, deputy head of the boom leaves lighting, "business is still difficult, said:" things will not deteriorate in the second half a lot, but they will not improve a lot.
"Now is definitely better than in 2008 and last year, but please, no more appreciation of the renminbi."
Others pointed out that rising labor costs, which may lead to layoffs, the government's concern that social instability, if there is mass unemployment.
"We still have difficulty in finding skilled workers, said:" You Light ", deputy manager of Ningbo Xingwei Plastic Product Co., Ltd., is China's largest exporter of knives and knife.
"The average salary is about 4,000 yuan ($ 650) (monthly) now, our wages had risen 10 percent so far this year, our business is relatively good, but the situation is not applicable to all companies. Many workers have leaving the factory, because the export market is weak. "
Now, some economists say growth is likely to meet the target set by the government, but the road ahead will be challenging.
"Zero growth in exports, in 2013 GDP growth forecast of 7.5% is consistent, so yes, my feeling is that the target can still be met," the economist at ING Bank in Singapore, said Tim Condon.
"But these risks is tilted downward."
 



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