Chinese exports in January dropped 17.5 per cent year-on-year, the country’s biggest decline in more than a decade. Imports to China declined by 43.1 per cent, an indication of sharply lower demand in the Chinese economy. Lower raw material prices were another reason for the decline in imports, but analysts said it also reflected reduced investment by private firms. Imports of copper products fell 19 per cent.

January was the third month in a row that Chinese exports fell, although the rate of fall was much faster than the 2.8 per cent drop in December. The decline in imports also accelerated sharply from the 21.3 per cent contraction in December.

Economists cautioned that year-on-year comparisons were complicated by the fact that the Chinese new year holiday fell in January this year and in February last year. This meant there were fewer working days in January this year.