In July 2023, China’s trade plunged by the highest percentage since the beginning of the Coronavirus pandemic. Overseas shipments dropped 14.5% in dollar terms compared to last year, while imports contracted 12.4%. These figures were worse than what economists had expected.
Among the issues plaguing Chinese imports are weak domestic demand due to high youth unemployment, weaker currency rates for the Yuan and a worsening property crisis with large developers on the brink of default in payments to their investors.
The weakened international demand for Chinese goods can be attributed to the threat of recession in the United States and Europe, combined with high inflation.
Exports to the U.S., the largest importer of Chinese goods, dropped by over 23% year-on-year, according to Customs data. Shipments to Europe fell by more than 20% year-on-year, amid tensions overchip technology and discussions by European countries about adopting restrictions on this type of technology to protect their national security against risks from China.
For more information, contact Debbie McGuire, Director – Freight Solutions.