China’s exports have been falling for 6 months

China’s exports have been falling for 6 months

While regional competitors’ exports are increasing, China’s exports have been declining for 6 months.

China’s exports have been declining for 6 months.

According to data from the General Administration of Customs of China, the country’s exports in October decreased by 6.4 percent compared with the same month last year, reaching $274.8 billion.

After declining 6.8 percent annually in the first two months of this year, exports rose above expectations with 14.8 percent in March and 8.5 percent in April, up 7.5 percent in May, 12.4 percent in June and 14.5 percent in July. 8.8 percent in August and 6.2 percent in September.

With the 6.4 percent drop in October, the downward trend in the country’s exports continued for the sixth month.

Analysts predict that the decline in exports will continue in the coming months due to weak global demand for export products.

EXPORTS OF REGIONAL COMPETITORS INCREASE

It is assessed that the continued downward trend in exports in China may be a sign of structural changes, as well as a change in the path of investments and supply chains in the region after the Covid-19 epidemic.

Exports from Vietnam, which has been seen as an alternative investment destination to China in the field of manufacturing in recent years, rose 5.9 percent year-on-year in October. The country’s exports had also increased in the previous month.

Japan and South Korea also reversed the downward trend in their exports in the fall.

While Japan’s exports increased after three months in September, automobile exports to the US and Europe returned to their previous levels. South Korea’s exports rose 5.1 percent in October, ending last year’s downward trend. The country recorded an increase in key export items, especially the machinery industry.

China’s exports to ASEAN countries, its largest trading partners, fell 15.1 percent year-on-year in October. Exports to the US decreased 8.2 percent, continuing the downward trend of the last 15 months.

IMPORTS INCREASED FOR THE FIRST TIME AFTER 8 MONTHS

China’s imports rose 3 percent in October compared with the same month last year, reaching $218.3 billion.

After declining by 10.2 percent annually in the first two months of the year, imports showed a recovery trend with a decrease of 1.4 percent in March, but decreased by 7.9 percent in April, a 4 .5 percent in May, 6.8 percent in June. In July it decreased by 12.4 percent and in August by 1.4 percent, and in September it decreased by 7.3 percent and 6.2 percent.

Although the increase in imports in October is considered a result of the revival of domestic demand, it is doubtful that it can achieve stable growth in the medium term due to the fall in the value of the Chinese yuan.

The country’s foreign trade surplus also decreased in October compared to the previous month. The foreign trade surplus, which was $68.4 billion in September, was estimated at $56.5 billion in October. (AA)

Source: Sozcu

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