Trade needs support

China's poor trade data in June, with both exports and imports falling year-on-year, has unambiguously brought home the message that the trade sector will not repeat the high-rate growth enjoyed during the past decade. Instead, exporters will have to face the turbulence resulting from the global economic woes.

Although the economy of the United States, a major buyer of Chinese products, shows initial signs of solid improvement, it will hardly offset the adverse impact of the overall weak global economy on Chinese traders.

Moreover, trade protectionism, which tends to be more active during a global downturn, will further add to the pains of Chinese exporters, who are already suffering from decreasing new orders and slumping profit margins.