The slowness of China’s exports became worrying
According to Webangah News quoted by Mehr News, analysts say Chinese factories are likely to face severe pressure in the coming months due to Western tariffs and problems caused by falling demand, while volatility in financial markets and fears of America’s recession poses new challenges for policymakers trying to shore up a fragile economic recovery.
Customs data on Wednesday showed that outgoing shipments rose 7 percent in July from a year earlier, slower than the 8.6 percent growth in the month. June and forecasts of an increase of 9.7% this month.
According to economists, China’s export growth may remain single-digit in the future due to base effect, but due to the decrease in foreign demand and the imposition of tariffs, the export shipments will be in half They will face more pressure in the second year of 2024.
China’s imports, on the other hand, rose at a robust 7.2 percent, reversing a 2.3 percent decline in June and marking the strongest performance in three months. shows. It also beat analysts’ expectations for a 3.5 percent increase.
According to analysts, the clearer import figures are related to the rush of Chinese companies to buy chips before further restrictions on chip exports to China by the US. Looking ahead, the bullish business cycle may be over. Both imports and exports are expected to decrease in the third quarter.
China’s crude oil imports fell to their lowest level since September 2022 in July, while imports of iron ore and soybeans rose from a year ago. Despite government efforts to stimulate domestic demand after the pandemic, the world’s second-largest economy has struggled to gain momentum. A prolonged real estate slump and fears about job security have hit consumer confidence hard.
China’s economy grew 4.7 percent in the second quarter, which was less than expected, prompting the need for more support to meet the growth target. 5% to be maintained. China’s leaders pledged last week that stimulus measures would be skewed towards consumers and that the country would carry out “reciprocal adjustments” through 2024.
China’s trade surplus fell to $84.65 billion in July, while forecasts showed a decline of $99 billion, and ended up at a record $99.05 billion. Receipt registration. America has repeatedly exaggerated this surplus as evidence of the commercial advantages of Chinese companies.
Tariffs threaten exports
Analysts say slowing export growth is adding to concerns about the sector’s outlook, with many countries increasingly wary of China’s trade dominance. The US, Europe and emerging economies from Turkey to Indonesia have raised tariffs and placed other barriers on Chinese products.
Washington announced in May that it plans to impose tariffs on a range of Chinese products. on August 1, but decided to postpone some of them. Reuters reported on Tuesday that Chinese tech giants including Huawei and Baidu as well =”text-align:justify”>Startups have ramped up purchases of high-bandwidth semiconductors to stockpile enough of the equipment before the U.S. is expected to limit chip exports to China. For example, last month, China’s imports from the United States increased by 24.1 percent compared to a year earlier, compared to a 1.7 percent decrease in June.
This week’s sell-off in global markets, fueled by fears of a possible slowdown in the US economy, added another layer of concern for Chinese exporters. According to economists in Capital Economics the decrease in export growth is mainly due to the decrease in export prices because the volume Exports remain close to their highest levels, reducing the profit margins of Chinese manufacturers.
