The figure for Chinese trade balance for January will be released Tuesday night, and should show that the export surplus has dipped below $20 billion for the first time since October. The trade figure influences both commodity prices and business activity in emerging markets.
China demands large quantities of raw materials for its manufacturing and service sectors, and a decline in domestic output weighs on demand for energy and for industrial metals, dragging the prices of each lower.
Developing economies tend to operate at the beginning of the stream within the Chinese production line. Whether an emerging-market country exports resources or provides labor, the majority of its revenue is derived from output to China.
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