Exports from China shrank by more than 12 percent in June. Imports have also fallen significantly. The economic slump in important trading partners has consequences for the Asian country.
China’s foreign trade contracted significantly in June for the second time in a row. Exports fell 12.4 percent year-on-year to around $285 billion, the customs agency said today. The imports of the second largest economy fell by 6.8 percent to 215 billion dollars. Both values were weaker than expected by experts. Foreign trade had already cooled off in the previous months.
The main reason for the decline in exports is primarily the weak dynamics on the world markets. Inflation and higher interest rates and energy prices as a result of the war in Ukraine are also impacting demand for products “Made in China”.
The weakness in imports, on the other hand, is due to the weak domestic market in the People’s Republic. The economic recovery there after the end of the corona restrictions has fallen short of expectations.
Exports to the USA fell particularly sharply
Trade with the USA collapsed particularly sharply, with China exporting 23.7 percent less than in the previous year. Exports to Germany fell by 15 percent. Chinese imports from Germany rose by 0.7 percent.
China is dealing with a “complex and difficult environment,” said Customs spokesman Lyu Daliang. However, the country’s economy is resilient and has great potential.
China will release second quarter growth figures on Monday. In the first three months, economic output increased by 4.5 percent. Most recently, many economists had lowered their expectations for the year as a whole. China’s biggest economic problems include a crisis on the real estate market, high youth unemployment and general consumer restraint.
Sino-Russian trade has increased
Meanwhile, as a result of Western sanctions, trade between China and Russia has risen to its highest level since the beginning of the war against Ukraine. The two countries exchanged $20.83 billion worth of goods in June, according to Chinese customs data.
The imports of the People’s Republic grew by 15.7 percent to 11.28 billion dollars. China is buying Russian oil, coal and some metals at discounted prices. Exports to Russia rose 90.9 percent to a total of $9.55 billion. According to the analysis agency Autostat, six of the ten largest suppliers on the Russian car market are now Chinese companies such as Haval, Chery and Geely.