China's exports dropped again in May - WSJWSJ reports the decline in China's exports continued to deepen in May, new data show, emphasizing how hopes for a recovery in the world's third-largest economy remain pinned on the effectiveness of the government's stimulus program. Merchandise exports in May fell 26.4% from a year earlier, China's Customs agency said, accelerating from April's 22.6% decline as global demand remained weak. China's imports also extended their fall, dropping 25.2% in May from a year earlier after shrinking 23% in April. The weak export performance is shrinking China's trade surplus, which at $13.39 billion for May is more than a third smaller than in the same month last year. Other data issued showed stimulus money continuing to flow into the economy. Fixed-asset investment, China's main measure of capital spending, rose 38.7% in May and is up 32.9% for the year so far. That's the fastest growth since the investment boom of 2004 -- but activity still remains concentrated in the areas benefiting from the govt measures.
