It is the sharpest decline in foreign trade since the beginning of the corona pandemic.
(Photo: dpa)
Beijing Chinese foreign trade collapsed in June. As the customs authority in Beijing announced on Thursday, exports fell by 12.4 percent year-on-year to around 285 billion US dollars (equivalent to 256 billion euros). This is the largest decline since the start of the corona pandemic more than three years ago.
The imports of the second largest economy in the world fell by 6.8 percent to around 215 billion dollars. Both values were even worse than expected by analysts. Foreign trade had already cooled off increasingly in the previous months.
The main reason for the sharp decline in Chinese exports is the weak momentum on the world markets. High inflation, higher interest rates and high energy prices as a result of the war in Ukraine are also impacting demand for products “Made in China”.
The import weakness is due to the weak domestic market in the People’s Republic. The economic upturn there after the end of the corona pandemic has fallen short of expectations.
Chinese imports from South Korea fell particularly sharply: by 19 percent. This points to continued weakness in Chinese demand for semiconductors and other components used in the manufacture of electronic devices in the People’s Republic.
The government in Beijing has set a moderate growth target of around five percent for this year, after the target for 2022 had been clearly missed. Since taking office in March, Chinese Prime Minister Li Qiang has repeatedly promised measures to stimulate the economy, but so far there have been no concrete steps.
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