According to the latest figures available, the total imports into China during the month of August 2012 fell 2.6 per cent compared to the same month of the previous year.

The total exports form the country grew 2.7 per cent in August compared to August of 2011 and this resulted in an increase in trade surplus from $25.1 billion in July to $26.7 billion in August. The contraction of imports is a worrying sing for the world’s second largest economy.

The contraction has only happened in 2008 and 2009 due to the global financial crisis and in January-February because of the Chinese New Year holiday. The domestic demand for imports fell from 1.5% in July to -7.5% in August and the government is now expected to take more steps to promote trade with international partners in order to boost growth in the export-led economy.

The GDP growth in the third quarter in China is expected to be below 7.6 per cent reported in the second quarter. The slow rate of export growth in the country might present a difficult challenge for the government in China, which is looking at ways to revive its economic gloom and put the economy back on high growth track.