China’s exports fell for a third straight month in July amid a slump in global demand, while imports plunged as domestic pressures also undermine the economy’s recovery.
Overseas shipments dropped 14.5% in dollar terms last month from a year earlier — the worst decline since February 2020 — while imports contracted 12.4%, the customs administration said Tuesday. That left a trade surplus of $80.6 billion for the month. Economists polled by Bloomberg had forecast that exports would drop 13.2% while imports would shrink 5.6%.
China’s economic recovery this year was expected to be buoyed by strong consumption, but momentum is waning as confidence and domestic demand remains weak — issues underlined by the fifth consecutive month of falling imports. Data due Wednesday is expected to show consumer prices declined in July, adding to evidence of that lack of demand.
Exports, meanwhile, have been waning because of slowing demand overseas — making it impossible to maintain the record level of shipments seen in 2021 and 2022 during the pandemic.
That weak global trade outlook can be seen in the continued poor performance of South Korean exports, which fell almost 17% in July for the 10th straight month of declines. Shipments from South Korea to China dropped more than 25%, showing the extent of slacking demand in China for semiconductors and other electronic parts.
The government in Beijing is looking to stimulate domestic growth with a slow rollout of policies to boost demand for houses, electric cars, and other products.
