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China’s economy continues to struggle as exports see another decline


Sep 7, 2023

China’s exports have experienced a decline for the fourth consecutive month, as the country struggles with weak demand both domestically and internationally. Official figures show that exports fell by 8.8% in August compared to the previous year, while imports dropped by 7.3%. Although these declines were not as severe as anticipated, China is still facing numerous post-pandemic challenges, including a property crisis and low consumer spending. The global demand for Chinese goods has also diminished due to the ongoing trade dispute with the US and the effects of the coronavirus. This downturn is having a significant impact on the country’s economy, which heavily relies on exports for growth.

A report by the US Census Bureau further highlights the declining demand for Chinese goods. It revealed that China’s share of US goods imports has fallen to its lowest level since 2006 for the year ending in July. The percentage of imported goods from China during this period was 14.6%, down from a peak of 21.8% in March 2018 before the US-China trade war escalated. These statistics demonstrate the economic consequences China is facing as a result of strained trade relationships.

Despite these challenges, the Chinese government has chosen not to launch a large stimulus program to boost the economy. Instead, it has implemented a series of measures in recent months aimed at supporting individuals and businesses. These measures include interest rate cuts by the country’s central bank and plans to allow major cities to reduce minimum homebuyer deposits. Lenders have also been encouraged to lower rates on existing mortgages. In addition, the government has introduced various other measures such as increasing personal income tax allowances for children’s education and reducing the duty on share trading.

Ahead of the release of trade figures, the state-run newspaper The Global Times published a story criticizing negative comments from Western politicians and media regarding the Chinese economy. The article highlights that the Chinese economy is on a path to recovery with strong momentum in terms of innovation and green development. It acknowledges that the country is facing difficulties and challenges due to the global economic slowdown but emphasizes that progress is being made.

By Editor

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