No pain, no gain in trade transformation this year

China's foreign trade got off to a rocky start in 2015, declining 10.8 percent in January compared with the previous year to 2.09 trillion yuan ($334.4 billion), according to figures by the General Administration of Customs. Exports reached 1.23 trillion yuan, a 3.2 percent drop, while imports nosedived by 19.7 percent to 860 billion yuan. After seasonal adjustments, the decline in all three categories narrowed somewhat, but still fell into the red.

The January performance came amid declines in the manufacturing sector and a general slowdown in the economy. The purchasing managers index, a gauge of the manufacturing industry, stood at 49.8, pointing to a contraction in business. Recently, the central bank lowered the required reserve ratios for banks and other financial institutions, an indication that policymakers were convinced that the economic slowdown was steeper than expected.

China's foreign trade sector will face mounting pressure this year. It is stuck in a transitional situation - one in which the old growth momentum built on easy credit and low costs is a thing of the past - but new impetus generated by added value, branding and services is still being shaped. During this painful and long-term transition, China's foreign trade will grow slowly, with occasionally monthly declines.