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the protectionist measures taken. “If we turn protectionist, I don’t know how we
can be an exporting power. Self-sufficient exporting powerhouse is an oxymo-
ron,” he said.
Thus, the captains of industry and leading economists seem to believe
that we should take all necessary steps to build a “globally competitive India”
rather than a “self-reliant India”.
[Source : T.N.C. Rajagopalan in Business Standard, New Delhi, dated
8-6-2020]
China May exports slip back into contraction, imports worst
in 4 years
China’s Exports contracted in May as global coronavirus lockdowns con-
tinued to devastate demand, while a sharper-than-expected fall in imports point-
ed to mounting pressure on manufacturers as global growth stalls.
The sombre trade readings for the world’s second-biggest economy
could pile pressure on policymakers to rollout more support for a sector that is
critical to the livelihoods of more than 180 million workers. Total trade accounts
for about a third of the economy.
Overseas shipments in May fell 33 per cent from a year earlier, after a
surprising 3.5 per cent gain in April, Customs data showed 7-6-2020. That com-
pared with a 7 per cent drop forecast in a Reuters poll.
While exports fared slightly better than expected, imports tumbled 16.7
per cent compared with a year earlier, worsening from a 14.2 per cent decline the
previous month and marking the sharpest decline since January, 2016. It had
been expected to fall 9.7 per cent in May.
“Exports benefited from the ASEAN (Association of SouthEast Asian
Nations) market and exchange rate depreciation, while imports were affected by
insufficient domestic demand and commodity price declines,” said Wang Jun,
Chief Economist of Zhongyuan Bank.
As a result, China posted a record trade surplus of $ 62.93 billion last
month, the highest since Reuters started tracking the series in 1981, compared
with the poll’s forecast for a $ 39 billion surplus and $ 45.34 billion surplus in
April.
China’s trade surplus with the US widened to $ 27.89 billion in May,
Reuters calculation based on Customs data showed. This comes as Sino-US ten-
sions are again on the rise, though sources say President Donald Trump has little
choice but to stick with a Phase 1 trade deal for now.
Both official and private factory surveys for May showed sub-indexes for
export orders re-mained deep in contraction. Profits at China’s industrial firms
fell almost 30 per cent in the January-April period.
Analysts said bright spots like exports of medical supplies, of which
China has dominated the supply chain, masked the strong headwinds faced by
exporters stuck with unsold stock and cancelled orders from abroad.
In the first half of May, China shipped 63.2 billion yuan of medical sup-
plies, Reuters calculations based on Customs data showed, compared with 71.2
billion yuan in the March-April period.
[Source : The Indian Express, New Delhi, dated 8-6-2020]

EXCISE LAW TIMES  15th June 2020  57