China Says Exports to West Face Challenges | China

China Says Exports to West Face Challenges
Linda Young

Beijing, China

China's commerce ministry says its exports face "severe challenges" because of economic problems in its key Western markets.

Sales of exports to the United States and Europe account for 40 percent of China's total exports. However, data slated for release on Saturday will show a steep drop in export growth in November, ministry officials said.

In October, exports to the U.S. fell by 5 percent and by 9 percent to Europe compared to the same month a year earlier.

In addition, the continued poor economic growth in the U.S. and Europe means that China cannot expect its sales of exports to improve to those markets next year.

Although China's total exports were still up by 15.9 percent ,it was the weakest growth rate in two years. Most of that growth was in exports to Latin America.

China will attempt to boost its imports from the U.S. and Europe to try to support their economies and also to balance trade between it and those affected nations. The commerce ministry blamed rising wages in China for increasing the cost of exports. Wages have increased to around $1.10 per hour for Chinese workers now from around 10 cents per hour in the early 1990s.

Moreover, China's commerce ministry officials said the nation will attempt to boost exports to developing markets in Asia and Latin America to make up for the drop in export sales to the U.S. and Europe.

However, the U.S., Europe and Japan account for about two-thirds of world consumption.

Critics say it is not realistic to expect developing nations to rise to a level of consumption that would compensate for a drop in demand from developed nations.