China exports deflation as home demand for steel and autos low

Dollar-denominated exports increased 0.5% in November after 7-month stall

20231207 China Trade

The value of China's car exports rose 28% in November from a year earlier, but unit prices fell 10%. © AP

IORI KAWATE and HIROMITSU GOTO, Nikkei staff writers

BEIJING/TOKYO -- Prices of some 70% of China's major exports, including steel products and cars, have declined over the last year and companies have increasingly opted to sell excess inventory abroad at low prices in the face of sluggish domestic demand.

These "deflationary exports" from China, which makes up a high share of global production, can ease inflationary pressures overseas -- but can also cause trade frictions price competition intensifies..

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