China’s prospects weaken further

Falling exports and rising inflation point to hard times ahead for China.

The latest data from China provided little encouragement for the bulls. China returned to a trade surplus in March, with exports up 8.9% year on year, compared to a growth of 6.9% on average during the first two months of 2012. But shipments to Europe, China's biggest market, fell by 3.1% from a year earlier. Imports were a disappointment, expanding by an annual 5.3%. Import growth was weaker than export growth over the first quarter. Inflation rebounded in March, climbing by an annual 3.6%.

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