China faces challenges in emerging markets

China's foreign trade will face shrinking demand in emerging markets for the rest of the year, Ministry of Commerce spokesman Shen Danyang said on Thursday.

The challenges come as the renminbi appreciates and rising labor costs continue to affect the country's exporters, Shen said at a news briefing.

A survey by the ministry of more than 1,900 foreign-trade enterprises shows significant fluctuations in orders from emerging markets.

Shen said China's overseas trade faces a grim situation, with emerging markets seeing slower economic growth, capital outflows, currency depreciation and worsening inflation, although developed markets have improved.

The country's exports unexpectedly dropped by 0.3 percent from a year earlier in September, with shipments to emerging markets slowing significantly, Shen said.

He added that exports in the next two to three months will see mild growth, while overall trade will probably maintain steady growth in the fourth quarter.

Imports will see remarkable growth in the coming months, fueled by the economic pickup at home, Shen said.