China's First Export Decline in Seven Years

A slew of grim economic data released this week dashed any lingering hopes that China can somehow maintain its growth momentum despite the global economic slowdown. Much to the shock of government officials and industry observers, November exports declined by 2.2% year over year, the first such decline in seven years. Worsening demand in major export markets of U.S. and Europe is cited as the key factor for the drop.

The producer price index (PPI) released this week was not encouraging either: The index grew by 2.2% in November, the slowest in more than two years and sharply down from 6.6% in October. The sharp decline indicates further weakening in China's industrial production. The only good news is that the consumer price index (CPI) rose by only 2.4% in November, the slowest pace for the year and down from 4% in October. The cooling of inflationary concerns may give the central government more room to cut interest rates and stimulate the sagging economy.

Market Recap
Due to concerns about the weak economic outlook and the lack of new stimulus measures from China's annual Central Economic Work Conference held from Monday until Wednesday, the overall Chinese stock market declined for the week. The Shanghai Composite Index decreased 3.2% to close at 1,954 points on Friday, while the Shenzhen Composite Index dropped 2.6% to 7,093.

Technology
Lenovo in Talks to Buy Brazilian PC Maker
Lenovo, the world's fourth largest PC manufacturer, is considering acquiring Brazil's largest PC maker, Positivo, which Dell is also reportedly interested in buying. Brazil, as well as India and Russia, is among the key markets that Lenovo is planning to explore. Positivo accounts for 21.4% of the retail computer market in Brazil.

Industrial
November Auto Sales Declined by 15% Year over Year
According to reports from China's auto industry association, carmakers sold 685,000 units in November, down 15% year over year and down 4.3% from October. For the first 11 months, auto sales grew 8.5% from the year-ago period to 8.6 million units, mainly due to robust demand in the first half of 2008.

Consumer
Fast-Food Chains McDonald's and KFC Slash Prices in China
McDonald's has launched a marketing campaign offering discounts of up to 20% for a wide range of products in China. McDonald's and KFC also kicked off special meals with discounts as high as 40%.

Iris Tan, Peter Liu, and Feliz Li contributed to this article.