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Chinese Exports Collapse Leading To 2nd Largest Trade Deficit On Record
Zero Hedge ^ | March 7, 2014 | Tyler Durden

Posted on 03/07/2014 10:31:28 PM PST by SatinDoll

Plenty of excuses out there for this evening's collosal miss in Chinese exports (-18.1% YoY vs an expectation of a 7.5% rise) mainly based on timing issues over the Lunar New Year (but didn't the 45 economists who forecast this data know the dates before they forecast?)

This is a 6-sigma miss and plunges China's trade balance to its biggest miss on record and 2nd largest deficit on record. Combining Jan and Feb data (i.e. smoothing over the holiday), exports are still down 1.6% YoY - not good for the much-heralded global recovery. Exports to the rest of the BRICs were all down over 20% but no there is no contagion from an emerging market crisis.

Even when the trade deficit was last this large, economists were more accurate - this is the biggest miss on record...

Seasonally-adjusted the data is stunningly bad...

*CHINA FEB. SEASONALLY ADJUSTED EXPORTS FALL 34% MOM *CHINA FEB. SEASONALLY ADJUSTED IMPORTS FALL 0.4% MOM

and non-seaonally-adjusted

*CHINA'S FEB. EXPORTS FALL 18.1% FROM YEAR EARLIER (vs +7.5% expectations)

The excuse...

"The Spring Festival factor caused sharp fluctuations in the monthly growth rate as well as the monthly deficit," Customs said in a statement accompanying the data.

Chinese traders followed their "business habit" of bringing forward exports ahead of the holiday, and focusing on imports immediately afterwards, it added.

But, our simple question is - didn't they already know this when applying their forecasts? If so - then why a 6-standard-deviation miss?

At least they didn't blame the weather?!!

It seems the massive imports of copper - to act as collateral for all the shadow banking loans - also did not help as imports surged...

*CHINA JAN.-FEB. COPPER, PRODUCT IMPORTS 915,000 TONS

All that apparent demand and yet the price is collapsing - not good for the credit unwind

And what does it say about the US that our trade balance with China collapsed MoM...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: china; copper; economiccollapse; globalism; madeinchina; manufacturing; tradebalance; trends
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A comment by Truth in Sunshine:

Confucius say:

"He who relies most on making & selling discretionary goods during boom times suffer most when sour economy & stagnant and declining real wages lead to gloom times."

Bernanke, Kuroda-san, Draghi, the PBoC, and the rest of central banker wankers BROKE THE GLOBAL ECONOMY. Sit back & enjoy the fireworks to follow.

SO MANY people & entities paid way too much for mispriced assets over the last 5 years that it is positively EPIC.

And hundreds of massive, multinational corporations that invested TRILLIONS in China over the last 20 years in the form of plants, factories, R&D centers, and other caped begin to literally fret...

***************************************************

Those who have been doing business with the Chinese are going to be really, really sorry.

1 posted on 03/07/2014 10:31:29 PM PST by SatinDoll
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To: SatinDoll

I’m curious why China suddenly put the brakes on mailing goods, for many months it has taken weeks for goods to leave China.

We thought it had to do with lithium batteries, but it is way beyond that, order something from China, and it just sits, and sits, and sits, literally for weeks, before they let it go.

Little things are taking 45 and 55 days to get here.


2 posted on 03/07/2014 10:37:43 PM PST by ansel12
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To: SatinDoll

Excellent — now keep their slave-labor garbage out of our country, or at least put on a tariff so heavy that the cost of buying them will be prohibitive. They’re wobbling. Let’s give them a little push.


3 posted on 03/07/2014 10:38:08 PM PST by TBP (Obama lies, Granny dies.)
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To: TBP

Americans are broke for the most part and aren’t buying like they were and many around the world would say the same thing, so of course Chinese sales would be down.


4 posted on 03/07/2014 10:40:40 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: SatinDoll
Those who have been doing business with the Chinese are going to be really, really sorry.

I agree, but I would like to hear your reasons, if you don't mind. What do you think is going to happen?

5 posted on 03/07/2014 10:40:45 PM PST by Captainpaintball
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To: ansel12
Little things are taking 45 and 55 days to get here.

Can you imagine Chinese Chicken taking 45 or 55 days to get here?

In the meantime everyone 'sign' this, please:

https://www.change.org/petitions/congress-keep-chinese-chicken-out-of-our-schools-and-supermarkets

6 posted on 03/07/2014 10:42:44 PM PST by Captainpaintball
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To: ansel12

Are you talking about ebay? I have ordered and received little $2-10 items that come direct from China or Hong Kong with no problem. Stuff like battery chargers, LED flashlight that was $3 and very good ran on 2 AA batteries, LCD thermometers etc minor computer parts/// etc


7 posted on 03/07/2014 10:43:40 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: A CA Guy

Good. Now instead of being down, let’s CRASH them.


8 posted on 03/07/2014 10:45:11 PM PST by TBP (Obama lies, Granny dies.)
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To: A CA Guy

Americans are broke for the most part....... So broke that WalMart is getting too expensive so they hit the dollar stores and their ilk


9 posted on 03/07/2014 10:45:15 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: TBP

Live your life and their economy will do what it will do.

IMO we will be at war with China.

#1 They have polluted 60% of their drinking water.
#2 Been burning through their natural resources.
#3 Huge army of millions of men who have no wives due to all the abortions in China.

They must war and grab land and materials or die at this point IMO. But they have not learned to live clean yet and destroy everything in their path (again IMO).


10 posted on 03/07/2014 10:50:22 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: dennisw

Their are some tearing down old homes and building huge new ones in my neighborhood, and their also seems to be a dwindling middle class and far more poor.

California anyway has 90% of their births on welfare and a third of all the welfare in the country. I don’t see much promise in the near future for my state.


11 posted on 03/07/2014 10:52:35 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: Captainpaintball

Because when the discretionary cash of Americans is no longer available to buy the kinds of things China manufactures, then those American businesses that have invested in hard assets, such as buildings and other facilities, will fail.

It is that simple.

I have very little discretionary cash. Literally, I scrape to come up with enough money to pay my utilities every month. So items manufactured in China are not being purchased by me. I’m not “feeding” this economic monster.

Read post #2.


12 posted on 03/07/2014 10:52:41 PM PST by SatinDoll (A NATURAL BORN CITIZEN IS BORN IN THE USA OF USA CITIZEN PARENTS)
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To: dennisw
Americans are broke for the most part....... So broke that WalMart is getting too expensive so they hit the dollar stores and their ilk

I think they're hitting the couch!

13 posted on 03/07/2014 10:54:23 PM PST by dr_lew
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To: dr_lew

Many are reaching into personal savings and credit cards.


14 posted on 03/07/2014 10:56:19 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: dennisw

Our Chinese retailers for flashlights are taking forever.

I just waited about 50 days for a flashlight, and my headlamp shipped on February 13, is still “”, Origin Post is Preparing Shipment””, on the flashlight forums many are complaining because the shipments are exceeding the 45 day Paypal limit for complaints.

Many times we have verified that it is Chinese customs delaying the shipments, not the retailers.


15 posted on 03/07/2014 10:57:10 PM PST by ansel12
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To: Captainpaintball

I can’t imagine why we would need to import chicken from China. If there is one thing we do well it is industrialized farming. Particularly chicken and other foul.

We can generally hatch, raise, harvest and ship and American chicken anywhere in the World for less than it can be raised in the local area.

It seems there is no process or product innovation we would not ‘share’ with our Asian friends for the benefit of saving a few pennies in production.


16 posted on 03/07/2014 10:58:49 PM PST by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: A CA Guy
They must war and grab land and materials or die at this point IMO. But they have not learned to live clean yet and destroy everything in their path (again IMO).

I have seen smog headlines recently, but even at that, it's still underplayed. To me it's surreal that we're having this "war on diesel", for example, when the air and water are cleaner than they have been in decades, even a century in urban areas.

Then I look at the MODIS satellite pictures of China, and it's like some kind of horror movie! Yet, it's ignored or glossed over. What is with that? Somebody tell me.

17 posted on 03/07/2014 11:00:27 PM PST by dr_lew
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To: SatinDoll

Thanks for posting this article which I was able to read just before going to bed...which I will do reassured that the long awaited “readjustment” in the S&P will come soon.

Barry’s popularity could be heading for a major swoon if the big bubbles pop around the world at the same time.


18 posted on 03/07/2014 11:01:21 PM PST by Seizethecarp (Defend aircraft from "runway kill zone" mini-drone helicopter swarm attacks: www.runwaykillzone.com)
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To: dr_lew

What it is would be power buying silence.


19 posted on 03/07/2014 11:02:38 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: A CA Guy

Don’t feel too bad about California where you reside. Other states are just going at it slower. My county will be just as bad in 20 years.


20 posted on 03/07/2014 11:04:43 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: Captainpaintball

I don’t like that chicken business, my impression of China is that they have no concerns about honest business or conscious, or morality, the only restraint is which option is more profitable.

They will sell or do anything, without any qualms, they will look at the money only, if it is more profitable to not poison you, or not to poison you but a little, or not to poison you at all, it will be decided on their business plan, there will be no personal “hangups” interfering.

When Chinese business looks at business, it is purely based on money, there is no personal honor or codes, or Christian ethics involved, or even ignored, they are unaware of such concerns.


21 posted on 03/07/2014 11:05:28 PM PST by ansel12
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To: dennisw

We have the most conservatives of any state, but there is also the most liberals of any state here as well.


22 posted on 03/07/2014 11:07:42 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: dr_lew
I have seen smog headlines recently, but even at that, it's still underplayed. To me it's surreal that we're having this "war on diesel", for example, when the air and water are cleaner than they have been in decades, even a century in urban areas.
Then I look at the MODIS satellite pictures of China, and it's like some kind of horror movie! Yet, it's ignored or glossed over. What is with that? Somebody tell me.

I frequent a site/forum that has nothing to do with politics but has a small subsection where members discuss anything. By a 3 to 1 ratio people buy into the   eco-lies you mention. I post anti-EPA material and have at least some people thinking

But what you write above is the common sense I post. Americans are spoiled and have lost perspective on how clean this nation is. Our cities used to have horse shit on all the streets. That was pretty funky in the summer. Bred lots of flies too

23 posted on 03/07/2014 11:13:28 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: ansel12

the problem with China’s economy is that they’re devaluing their currency by pegging it to USD. Noticed that devaluing their currency didn’t lead to export growth that some ppl still stubbornly believe in. If their currency was allowed to rise, they will be able to enjoy the fruit of the labor


24 posted on 03/07/2014 11:16:04 PM PST by 4rcane
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To: SatinDoll; All

Interesting and interesting comments there and here. Thanks.


25 posted on 03/07/2014 11:17:12 PM PST by PGalt
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To: A CA Guy
We have the most conservatives of any state, but there is also the most liberals of any state here as well.

I lived and worked in your wonderful state a total of 19 months. I saw many different areas. I only had good experiences and only have good memories. This was all done before 1987 so I saw California at its best

26 posted on 03/07/2014 11:19:44 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: Jim from C-Town
It seems there is no process or product innovation we would not ‘share’ with our Asian friends for the benefit of saving a few pennies in production.

A couple of years ago I noticed some kind of doodad tee markers at the golf course for some tournament or something, and looking at one, they were marked Made in China, of course. The thing is, they were made of rustic looking wood. I thought, boy, I'll bet that wood came from the U.S.A, was shipped to China, made into tee markers, and shipped back. I still wouldn't doubt it.

27 posted on 03/07/2014 11:21:34 PM PST by dr_lew
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To: dennisw
Regan had the amnesty and bunches of second grade drop outs from everywhere came here to stay and go on our dole.

In another blessing of this amnesty there were many that falsified records for money though never here that came here after the amnesty to also get on the dole.

Then our current governor in the 70s allowed unions in government and now we have many billions in unfunded retirement debt that can't be paid to the overpaid government employees.

Hey, at least you can see the cast of Modern Family in a local mall filming like I did today.
Woop D Doo!

28 posted on 03/07/2014 11:23:58 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: dr_lew
The Chinese government wanted the fasted path to wealth possible at the expense of the longer term. They knew their days were numbered watching the rest of the world throw off the communist overlords and this was the way to extend their reign. It won't surprise me if the Chinese people's rage turns inwards instead of outwards for what the Chinese authorities have done to their future.
29 posted on 03/07/2014 11:32:29 PM PST by DB
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To: SatinDoll
Right. Neither will I. I have refused Christmas gifts that were made in China. Anyway, once those businesses that bought those factories go out of business, or leave the factories behind, China gets them ready to go for flee, I mean free. I think this would be especially helpful, not for novelty gifts like toys or even furniture, but for auto plants or computer lines

What is stopping them from just seizing it once things start to really go south in this country? Or even their country?

30 posted on 03/07/2014 11:38:00 PM PST by Captainpaintball
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To: A CA Guy
In another blessing of this amnesty there were many that falsified records for money though never here that came here after the amnesty to also get on the dole.

Soooooooooooooooooo ........... OK, I get it! Phew!

31 posted on 03/07/2014 11:38:41 PM PST by dr_lew
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To: ansel12

Drop shipping from suppliers. They hold your money in hopes that prices from the supplier will drop due to low demand. Looks like the case maybe.


32 posted on 03/07/2014 11:40:55 PM PST by Eagles6 (Valley Forge Redux)
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To: A CA Guy

Well, I just meant to say that people are hunkering down and spending as little as possible.


33 posted on 03/07/2014 11:42:03 PM PST by dr_lew
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To: dr_lew
Yeah, but people have to spend for food, their kids and stuff no matter what. So they are borrowing, digging into savings and selling stuff to survive.

Our own 5 year old had an accident at school. Cut his scalp in the hair line. We have non-Obama effected PPO for him.
First to doctor and paid that and then had to go to a plastic surgeon because it was too deep to fix in the office.
He's fine now but $1000 later WITH INSURANCE the lesson is you have expenses in life despite any attempted hunkering down.

34 posted on 03/07/2014 11:44:55 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: dr_lew

A third of all welfare and now 90% are born by welfare in this state. We have Chinese women coming here to birth kids to get on the dole. Many were caught and sent back for not being Latino I guess.


35 posted on 03/07/2014 11:46:20 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: dennisw

36 posted on 03/07/2014 11:56:22 PM PST by 2ndDivisionVet (I will raise $2M for Sarah Palin's next run, what will you do?)
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To: A CA Guy

At some point, things are going to get serious :-(


37 posted on 03/07/2014 11:57:35 PM PST by dr_lew
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To: Eagles6

I don’t think that applies to the kind of products I mean, things like new Fenix lights, and new models.


38 posted on 03/08/2014 12:09:20 AM PST by ansel12
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To: A CA Guy
They must war and grab land and materials or die at this point IMO. But they have not learned to live clean yet and destroy everything in their path (again IMO).

Demographics. The one child policy is hitting earlier than most predictions. The poplulation pyramid is inverting. What does it mean to be a son in this scenario if you have to support multiple family members. Imagine a couple in the same situation. There are no safety nets in China.
39 posted on 03/08/2014 12:21:48 AM PST by PA Engineer (Liberate America from the Occupation Media.)
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To: ansel12
I don't know. Worth checking out. If they're coming from only one supplier maybe not.

Doesn't look good anyhow. This all has the looks of WWIII coming up.

40 posted on 03/08/2014 12:28:01 AM PST by Eagles6 (Valley Forge Redux)
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To: dr_lew

Probably for the world at large.


41 posted on 03/08/2014 12:38:55 AM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: PA Engineer

I think they are killing off their people with pollution and poison while at the same time are making money. So, they are getting less people and richer at the same time.


42 posted on 03/08/2014 12:40:16 AM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: SatinDoll

Anybody but me noticing how China has been importing BIG quantities of critical wartime industry metals in the last 18 months or so?

From copper and aluminium to rare earths?


43 posted on 03/08/2014 12:42:15 AM PST by tcrlaf (Well, it is what the Sheeple voted for....)
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To: A CA Guy
Yep. And they are allied with the Russians who are poking zero with a blunt stick. Things do not look good for the community organizer in chief or us.

This is not going to be pretty.

44 posted on 03/08/2014 12:48:51 AM PST by Eagles6 (Valley Forge Redux)
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To: Captainpaintball

“What is stopping them from just seizing it once things start to really go south in this country?”

That is exactly my main concern. We tend to go to war over such issues.


45 posted on 03/08/2014 1:02:31 AM PST by SatinDoll (A NATURAL BORN CITIZEN IS BORN IN THE USA OF USA CITIZEN PARENTS)
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To: tcrlaf

Yes, I’ve noticed.

So, do you remember the last time China went to war with a large nation on another continent?

Neither do I.


46 posted on 03/08/2014 1:04:28 AM PST by SatinDoll (A NATURAL BORN CITIZEN IS BORN IN THE USA OF USA CITIZEN PARENTS)
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To: dr_lew

Yes, very soon.


47 posted on 03/08/2014 1:24:42 AM PST by Eagles6 (Valley Forge Redux)
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To: SatinDoll

They’ve got Russia for that. They’re in cahoots, latest I heard.


48 posted on 03/08/2014 1:32:15 AM PST by dr_lew
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To: Jim from C-Town

I have sold the lumber to build dozens of chicken house projects in the Carolinas in the last couple years. These projects were to get the chickens closer to the northeast and European markets. So unless you live on the west coast, most of the chicken you will buy in your grocery store will most likely come from NC.

China buys lots of framing lumber from the US and Canada. Most of the lumber they buy is middle to low grade. It is used for concrete forming, pallets and crates. They do not build a lot of single family homes like we do with western framing styles,ie. 2x4s in the walls. Most of their structures are missionary based.

What is interesting to see in my business is the increase in the amount of lumber we are shipping south of our border to Mexico. Factories have been built right across the border in places like Tijuana. We sell a company that just makes picture frames. Not only is there a factory there. They built housing and a school. It is in a gated and guarded compound to protect the workers and their families. I think this is the trend for low wage manufacturers who primarily want to sell their products to the US. There are other companies nearby that make furniture, cabinets and other things out of wood. All the raw material comes from the US. Therefore, I agree with another Freepree that many of these Chinese factories will shut down and move elsewhere. However, that elsewhere is probably south of our border, especially if the raw material and final product is primarily coming from and going to the US.


49 posted on 03/08/2014 5:00:03 AM PST by woodbutcher1963 (=)
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To: Jim from C-Town

Missionary should be masonry. Stupid Kindle.


50 posted on 03/08/2014 5:03:41 AM PST by woodbutcher1963 (=)
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