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China exports fall by 7.5% last month

  • By Al Mayadeen English
  • Source: Agencies
  • 7 Jun 2023 08:49
2 Min Read

It is hypothesized that increasing global inflation and the prospect of potential recession, as well as growing geopolitical tensions with the US, have decreased demand for Chinese products. 

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  •  containers stacked at Yantian port in Shenzhen in China’s southern Guangdong province (AFP)
    containers stacked at Yantian port in Shenzhen in China’s southern Guangdong province, 22 June 2021 (AFP)

Chinese exports fell by 7.5% in May compared to average exports last year, Xinhua news agency reported. 

The degression in May marks a sharp drop from April when exports had increased by 8.5%, according to figures published by the news agency. Imports in comparison fell by 4.5%. 

Last Month marked a break in China's post-pandemic growth streak. 

It is hypothesized that increasing global inflation and the prospect of a potential recession, as well as growing geopolitical tensions with the US have decreased demand for Chinese products. 

Check out: China’s booming export market

Related News

Lutnick says US-China trade talks could wrap tonight in London

Trump tariff blitz stirs worry despite 'progress' in Japan trade talks

Customs data showed that China's exports increased in March for the first time in six months as the second-largest economy in the world resumed its rebound after the onerous coronavirus restrictions were lifted late last year.

Total exports increased 14.8% year over year, a significant increase over last March when tight virus lockdowns hindered regular economic activity, as per data.

In December, China abruptly dropped some of the harshest Covid restrictions in the world, setting off a flurry of lawsuits that made it difficult for many enterprises to conduct regular business.

The outbreak "likely depleted factories' inventories", Zhang said, but added that "factories are (now) running at full capacity (and have) caught up the cumulated orders from the past".

The Director of the International Monetary Fund, Kristalina Georgieva, recently expressed optimism about China's prospects, as Beijing is expected to contribute significantly to global economic development, making up approximately one-third of it in 2023.

Read more: German's China exports drop 11.3% as EU-China exports rise 2.3%: FT

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