More good news from China overnight with November trade data coming in strong. From Bloomie:
China’s trade surplus widened last month to the largest in more than four years as exportsexceeded estimates, in a sign global demand is helping sustain a recovery in the world’s second-biggest economy.
The surplus of $33.8 billion was the biggest since January 2009, data from the General Administration of Customs showed yesterday in Beijing. Outbound shipments rose 12.7 percent from a year earlier, topping projections from 41 of 42 analysts surveyed by Bloomberg News, while import gains of 5.3 percent compared with a median projection of 7 percent.
The data reflect pickups in shipments to the U.S., Europe andSouth Korea. Stronger demand from abroad may give Premier Li Keqiang more room to implement reforms to increase the role of markets in the economy and meet a goal of reducing the nation’s reliance on exports in favor of domestic consumption.
Hard to know how much of this is real and how much bogus invoicing but strong nonetheless. It is a match with the lift in the global PMI for November.
If I were the Chinese I would take advantage by accelerating reform.
