Fall in Chinese Exports in the Last 12 Months Raises Concerns for Sea Trade
Port Finance International article shows us the sensible being the world to the behavior of the Chinese economy, in particular where the sea sector is concerned.
A surprise fall in Chinese export growth for March may signal a slowdown in global trade, directly impacting shipping and port demand, according to analysts. Exports fell 15% year on year for March, according to official government data released yesterday, a significant change from the previous two months of solid growth. “It’s a very bad number that was much worse than expectations”, Louis Kuijs, an economist at RBS, Hong Kong said. “It leads to warning flags both on global demand and China’s competitiveness”.
China has become the engine behind much growth in the shipping and port sector as double digit growth in recent years has driven competition and led to large scale investment in infrastructure upgrades. China itself has been active in developing port projects both at home and abroad but if the current slowdown is prolonged there are concerns that projects could be delayed. The Chinese government’s ambitious 21st Maritime Silk Road could be amongst the projects affected. It aims to link Asia, Europe and the Middle East at an estimated cost of well over 40 billion.