China’s Exports Drop by 4.6% …First Time in Seven Years

Last year, China’s exports declined for the first time since 2016, with a decrease of 4.6%.

According to Bloomberg and the Chinese customs authority, China’s total exports last year amounted to $3.38 trillion, a 4.6% decrease from the same period.

This is the first time since 2016 that China’s annual exports have decreased compared to the previous year.

A review of cumulative statistics from January to December last year shows that exports to the United States and the European Union (EU) each recorded a double-digit decrease.

The trade volume with the United States, including imports, decreased by 11.6%, the first decrease in four years since 2019.

In relation to this, Bloomberg reported, “The global demand has decreased, weakening the growth engine of the Chinese economy.”

Exports to Taiwan decreased by 16.1%, and exports to the Philippines, which is in conflict over sovereignty in the South China Sea, also decreased by 16.3%. Annual exports to Korea also decreased by 7.2%.

The decrease in China’s annual exports is generally interpreted as being due to the overall downturn in China’s manufacturing industry and a lack of domestic demand amid global demand contraction.

Nevertheless, signs of recovery are emerging in monthly exports since the second half of the year. December’s exports (in dollars) increased by 2.3% from the same period last year, reaching $303.62 billion.

The total import volume for 2023 was $2.55 trillion, a decrease of 5.5% from the same period last year. The decrease in import volume is expected to continue until the domestic market fully recovers.

Meanwhile, China’s exports in December last year increased by 0.6% in yuan terms, and imports decreased by 0.3%, according to the Customs Authority. Looking at the items, cars (up 69%) and ships (up 28.6%) led the overall performance.

By. Joon Hyung Kim