China’s exports continue to decline as global demand decreases
The decline in exports is a sign of weak global demand as economies around the world continue to struggle with the impacts of the COVID-19 pandemic. The fall in imports is also a reflection of weak domestic demand in China as the economy recovers from the pandemic, with consumers and businesses still uncertain about the future. The Chinese government has taken a number of measures to support exporters, including sending officials on chartered flights to meet with overseas clients, but the downward trend is expected to continue throughout 2023.
The decline in exports is particularly notable in the automotive and home appliance sectors, with the value of automotive exports rising 74.7% and home appliance exports falling the most. On the import side, iron ore purchases slumped nearly 30% by value in 2022, the most among the key items that China bought. The value of crude oil imports surged 41.4%, although the actual quantity of the commodity edged down 0.9%.
Decline in exports and imports is likely to have a negative impact on China’s economy as net exports will probably account for a smaller portion of growth for the year, or may even become a drag. The Chinese leadership has cited expanding domestic demand as a top priority for this year, however, consumer and business confidence has yet to recover to pre-pandemic levels.
Chinese government may need to take more measures to support the economy, such as increasing investments in infrastructure and cutting taxes to boost domestic consumption, which would help to offset the negative impact of the decline in exports and imports.
The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of The Kootneeti Team