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Chinese exports plunge 25% in February

2016-03-08 12:20:00

Chinese exports have seen their sharpest drop in almost seven years, adding to

concerns over the health of the world's second largest economy.

Exports dropped sharply by 25.4% from a year earlier, while imports fell 13.8%.

The weak data comes on the heels of Beijing registering the slowest economic

growth in 25 years.

China's National People's Congress, currently underway in the capital, has just

revised the 2016 growth target down, predicting a "battle for growth".

The February trade figures are likely to raise new fears over China struggling

to maintain economic growth while implementing reforms and trying to shift

towards more services and domestic spending.

Customs figures showed exports fell to $126.1bn ( 88.5bn) last month. That was

down 25.4% from a year earlier and worse than an expected fall of about 15%.

The poor trade data marks the worst performance since the height of the global

financial crisis in May 2009.

However, analysts cautioned that the data might have been affected by the

longer-than-usual Chinese Lunar New Year holidays.

With China often referred to as "the engine of global growth", the weaker

global demand for its goods is read as an indicator of the general global

economic climate.

Analysis: Karishma Vaswani, Asia Business Correspondent

China has often been called the factory of the world, but that narrative may

now be changing.

As global demand slows down, China is selling less to the world, but it is also

buying less from the world.

True - Tuesday's trade figures may have been affected by a longer than usual

Chinese New Year period last month, which meant workers were on holiday and

factory owners may have brought orders forward or delayed them.

But these February numbers will continue to put pressure on China's leaders as

they grapple with the worst growth rates in 25 years on the mainland.