China’s Exports Sluggish, Biggest Drop Since the Pandemic. China has recently been found to be facing pressure on trade as foreign shipments fall and domestic demand remains subdued.The customs administration said that China’s exports fell by 12.4 percent in dollar terms in June 2023 when compared to the previous year.
The data then marked a decline for two months in a row, as well as recording the biggest decline since the pandemic in early 2020. Meanwhile, customs reported a decrease of 6.8 percent for imports. Over the past three years, China’s global demand has been a strong driver of the country’s growth.
As global growth slows and many central banks still appear poised to raise interest rates to fight inflation, foreign demand for Chinese goods seems increasingly unlikely. For the record, China alone produces most of the world’s gallium and germanium. These restrictions will take effect from August 1, 2023.
Then, recently the US is preparing countermeasures for China’s policy of limiting the export of critical minerals, namely a bill that requires the establishment of a US national strategy to secure the Democratic Republic of Congo’s (DRC) important supply chain.
China’s Exports Sluggish. As is known, the DRC produces 70 percent of the world’s cobalt, which is one of the materials in electric vehicle batteries. Import data itself then underlined the weakening of the domestic economy and the impact of the US technology war with its allies.
China’s demand for electronic parts from Taiwan and South Korea as well as commodities from elsewhere is also still declining. Imports of soybeans, copper ore and concentrated copper, iron ore and natural gas all fell from May 2023.