China trade: de-risking, reshoring efforts chip away at exports as July shipments fall at steepest pace since early 2020
- China’s exports fell by 14.5 per cent in July compared with a year earlier, while imports fell by 12.4 per cent last month
- Falling exports will lead to weaker production, while slumping imports highlight lower domestic demand, which is set to test China’s 2023 growth target, analysts said
China reported a deeper-than-expected drop in both exports and imports in July, raising concerns beyond the current wave of global economic downturn, as the trend of supply chain relocation consolidates.
The slump points to worsening overall prospects, analysts said, with exports expected to contract at a similar scale until the end of the year, meaning growth will take time to rebound.
I’m pulling out my own savings to run my company now, and with it I can still pay for the employee salaries
Imports, meanwhile, fell by 12.4 per cent from a year earlier to US$201.16 billion, with China’s total trade surplus rising to US$80.6 billion in July compared to US$70.62 billion in June.
Millions of small business owners are struggling to keep their firms afloat due to an absence of sustainable income growth prospects, among them a Shenzhen-based housewares exporter surnamed Luo.
