Breaking | China’s exports plunge 20 per cent in February in fresh blow for policymakers

China’s exports plunged more than 20 per cent in February, ­falling on a scale not seen since the 2009 financial crisis.

The weaker trade figures will be a fresh blow for Beijing’s ­economic policymakers, who are trying to persuade markets around the world that the nation’s economy is sound.

The data released yesterday “confirmed the disappointing start to 2016” as the world’s second-biggest economy continued to face global headwinds, ­although the Lunar New Year might have disrupted certain ­activities, HSBC economists Jing Li and John Zhu wrote in a note to clients.

The economy grew at its slowest pace in a quarter of a century last year and analysts are also worried about the weakness of the nation’s currency and capital flowing out of the country. Rating agency Moody’s also said China would fail at least one of its three conflicting policy objectives of growth, reform and stability.

Commerzbank economist Zhou Hao said the trade fall was “really frightening”. “Net exports, on the surface, don’t matter much for China’s headline growth, but the real role of exports for China is far bigger if employment and the related value chain are considered,” Zhou said.

February exports fell by 20.6 per cent in yuan terms, or 25.4 per cent in US dollar terms, and marked a sharp acceleration from January, according to data from China’s customs administration.