China export | China's export growth slows in August but import growth declines

Due to rising energy prices, inflation, and anti-virus measures that affected both Chinese and international consumer demand, China's export growth slowed in August and its import growth.

(AP) BEIJING — August saw a decline in China's commerce as a result of rising energy costs, inflation, and anti-virus measures that affected demand from both Chinese and international consumers, while imports of Russian oil and gas increased.

According to customs data released on Wednesday, exports increased 7% over a year ago to $314.9 billion, slowing from July's 18% growth. Compared to the already subpar 2.3% rise in the previous month, imports decreased by 0.2% to $235.5 billion.

As Western economies slow down and interest rates are increased by the Federal Reserve and central banks in Europe and Asia to combat rising inflation, demand for Chinese goods has decreased. At home, customers' willingness to spend has been affected by the frequent closing of Chinese cities to combat virus epidemics.

According to Rajiv Biswas of S&P Global Market Intelligence, "the downturn in China's export industry is contributing to headwinds for the Chinese economy." The stagnant increase of imports emphasizes the "ongoing fragility of Chinese domestic demand."

The second-largest economy in the world saw growth fall to 2.5% in the first half of 2022, less than half the 5.5% annual objective set by the Communist Party in power, as a result of the shutdown of Shanghai and other industrial hubs to combat viral outbreaks.

Although factories have reopened, limitations that have lately been placed in places like Shenzhen's southern commercial district have limited operations. The same may be said about a dry summer that prevented southwest reservoirs from producing hydropower and hampered river shipping.

Forecasters from the private sector and the International Monetary Fund have lowered their previously low growth projections.

China's worldwide trade surplus increased to $79.4 billion, up 36.1% from the previous year.

Compared to a year ago, exports to the United States fell 3.8% to $49.8 billion, while imports of American products fell 7.3% to $13 billion. A tariff war was sparked by a politically sensitive trade surplus with the United States that decreased by 2.4% to $36.7 billion.

President Joe Biden has decided not to reverse the tariff increases put in place by his predecessor, Donald Trump, in an argument over Beijing's strategies for technology development. Beijing replied by increasing import taxes and ordering Chinese businesses to stop importing American goods.

The two parties' envoys speak on the phone but have not yet specified when conversations would restart.

China appeared to take advantage of discounts provided by the Kremlin to attract consumers in the face of Western sanctions over its war in Ukraine, driving up imports from Russia, which are primarily oil and gas, by 59.3% to $11.2 billion.

Although they annoy Washington and its allies, China's imports of Russian energy do not go against the sanctions imposed on Moscow. According to the International Energy Agency, China purchased 20% of Russian crude shipments in the previous year.

Before the February assault, Beijing proclaimed that its relationship with Moscow knew no bounds. Although Russia dislikes the sanctions, it has refrained from assisting President Vladimir Putin because of concern that it will lose access to Western markets and the international banking system.

To $8 billion, exports to Russia increased by 26.5%.

Due to sluggish European demand, exports to the 27-nation European Union fell 18.4% to $51.3 billion.

European product imports fell 33.1% to $26 billion. To $25.3 billion, China's trade surplus with Europe increased by 5.4%.

#chinaexport #chinaimports #chineseexports

Read more Latest Business News , Today Politics Headline , Today Finace News Update ,Latest Social News Update , World News Highlight , Entertainment Latest News , Today Sports News Update , Education Latest Update , Real Estate Today Update