China’s export growth sinks in August, imports shrink

Beijing, Sep 7 (BNA): China’s trade slumped in August as rising energy prices, inflation and anti-virus measures weighed on global and Chinese consumer demand.

Exports rose 7% from a year ago to $314.9 billion, slowing from July’s 18% expansion.

Imports shrank 0.2% to $235.5 billion, compared to the previous month’s already-weak 2.3% growth.

The Associated Press (AP) reported that demand for Chinese exports slumped as Western economies slowed and the Federal Reserve and central banks in Europe and Asia raised interest rates to contain rising inflation.

The frequent shutdowns of Chinese cities to combat the virus outbreak have affected consumers’ willingness to spend.

“The slowdown in China’s export sector is adding to the headwinds for the Chinese economy,” Rajiv Biswas of S&P Global Market Intelligence said in a report.

The lack of import growth highlights the “continued weakness in China’s domestic demand”.

Growth in the world’s second-largest economy fell to 2.5% in the first half of 2022, less than half the ruling Communist Party’s annual target of 5.5%, after Shanghai and other industrial centers were closed to combat the virus outbreak.

Factories have reopened, but recent restrictions in areas including the southern business hub of Shenzhen have affected activity.

So did the dry summer, which left reservoirs in the southwest unable to generate hydroelectric power and disrupted river shipping.

The International Monetary Fund and private sector forecasters have trimmed their already low growth forecasts.

China’s global trade surplus widened 36.1% from the previous year to $79.4 billion.

Exports to the United States fell 3.8% from a year ago to $49.8 billion, while imports of US goods fell 7.3% to $13 billion.

The politically sensitive trade surplus with the United States that helped spark the tariff war narrowed 2.4% to $36.7 billion.

Beijing responded by raising its import duties and telling Chinese companies to stop buying US exports.

Envoys from both sides talk by phone, but they have not yet announced a date for the resumption of negotiations.

Exports to the 27-nation European Union fell 18.4% to $51.3 billion, reflecting weak European demand.

Imports of European goods fell 33.1% to $26 billion.

China’s trade surplus with Europe widened 5.4% to $25.3 billion.

ZHB