China's export was far less than expected in November, crude oil and other commodity prices tumbled to the unexpectedly sharp drop in imports, the trade surplus hit a record high. China's economy is facing more downward pressure.
China's third quarter growth fell to 7.3% which is the lowest level in five years. The government is trying to lead China's economy achieve sustainable growth, but it cut interest rates last month because it worried about the economy cooling too violent obviously.
Import and export data are likely to be weak in November due to weak economic data, the Chinese government will release these data in the coming days. But the rise of the stock market may actually make it harder for the central bank to take further action to help the economic recovery because that could lead to the stock market speculation.
The huge surplus may lead export enterprise organization requiring an appreciation of the RMB. China's economic situation has gradually improved and that will bring greater upward pressure on RMB.
