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January 18, 2016

Global Economic Analysis: Government Policy Impacts Auto Sales In China

  • Chinese exports fell 1.4 percent to $224.1 billion in December after declining 6.8 percent the previous month. Imports were down 7.6 percent to $164 billion. The country ran a global trade surplus of $60.1 billion last month. China’s trade deficit with the European Union increased 36.8 percent to $15.6 billion in December while its surplus with the United States expanded six percent to $19.4 billion. Analyst Tom Rafferty said the December report “is in line with other indicators that suggest China's economy is stabilizing on the back of sustained stimulus measures.”
  • Chinese steel exports increased nearly 20 percent to 112.4 million tons in 2015, “an amount big enough to feed demand in Germany and Japan for a year and leave almost 9 million metric tons to spare.”
  • Auto sales in China increased 15.4 percent between November 2015 and December and 18.3 percent from December 2014 to December 2015. The Associated Press noted “Auto sales suffered an unexpectedly sharp contraction from June through August, rattling a global industry that is counting on China to drive revenue growth. Demand rebounded in September after Beijing cut sales taxes on vehicles with smaller engines.” The wire service notes sales had faltered because several major cities had made move to restrict new vehicle registrations in order to curb smog and congestion.