China: Trade slowdown
China's exports fell sharply in the first half of the year, marking the second consecutive month of contraction in June. Imports suffered the same fate, pointing to a growing fragility of the post-Covid Chinese economy.
The contraction of China's exports and imports underscores a continuing weakness in overall demand. The weakness of global orders contributed to a decline in exports in June, a decline more marked than the decline observed in May. Imports also declined over the same period. Despite this trend, China's trade surplus amounted to $70.2 billion in June, a slight increase over the previous month.
China's weak exports are almost widespread, with a significant fall to ASEAN, the European Union and the United States. One exception: exports to Russia increased by more than 90% in June, due in part to Western sanctions that limit Russia's trading partners.
The consumer price index, the main indicator of inflation, remained stable in June, while producer prices continued to decline. According to economists, second quarter growthshould be about 3 %over a year, while the Chinese government is aiming for 5% growth, which would already be the lowest rate ever in the second world economy in decades.
The Chinese authorities recognize the difficult situation, stressing the persistent inflation in the economies of developed countries, geopolitical conflicts and weak global demand. This has a direct impact on employment and on the thousands of foreign-oriented Chinese firms that are forced to slow down their activity.
To go further...
- Sales Administration (SDA) Subcontracting Export
- Import/export flow management (air & maritime)
- Diagnosis of international logistics flows
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