China's exports dive but its trade surplus grows

IMPORTS to China plunged in January, signalling that demand is shrinking alarmingly: they fell by 43.1% compared with a year earlier, worse than forecast and double the decline in December. But China's trade surplus, at $39.1 billion, is one of the biggest on record because a huge tumble in exports of 17.5 was dwarfed by falling imports. A recovery in Chinese exports is unlikely as the world slides deeper into an economic slump but imports may well pick up—China has resumed importing iron ore after running down stocks in recent months. China's economy could also get a boost from a big government stimulus package.