Chinese exports show record drop since February 2020 – Kommersant

Today, July 13, China Customs Administration released data on exports and imports of China in June. The volume of exports decreased by 12.4% compared to June last year and was worse than the forecasts of analysts polled by Reuters (9.5%). The June decline in exports was the largest in more than three years, since February 2020, when China imposed strict anti-COVID restrictions. May exports also decreased, but not so significantly – by 7.5%.

Imports of goods to China in June decreased by 6.8%, which also turned out to be worse than the forecasts of analysts polled by Reuters (4%). May imports to China fell by 4.5%. Representatives of the Customs Administration attributed the sharp drop in exports to “a weak recovery in the global economy, a slowdown in international trade and investment, and growing protectionism.”

Experts note that in the current situation, the Chinese leadership needs to actively develop domestic demand. “China has to depend on domestic demand,” the TV channel quoted CNBC Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, said: “In the next few months, the main question will be whether domestic demand can recover without significant government stimulus.”

Evgeniy Khvostik