China sees sharpest drop in exports since 2020 amid sluggish global demand

Containers wait to be transported on a dockyard in Yantai in eastern China's Shandong province on Sunday, Aug. 6, 2023. - Copyright AP/Chinatopix

By Euronews with AFP

Published on 08/08/2023 - 09:50

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Sales of Chinese products to foreign markets fell by 14.5% year-on-year last month, shrinking for the third consecutive month.

China recorded its sharpest drop in exports since July 2020 last month, according to official figures released on Tuesday, as sluggish global demand threatens recovery prospects for the world's second-largest economy.

Sales of Chinese products to foreign markets fell by 14.5% year-on-year in July, shrinking for the third consecutive month, according to figures published by China's customs authority.

It marks their largest decline since a 17.2% drop in January-February 2020 when the Chinese economy ground to a standstill in the early weeks of the Covid-19 pandemic.

Apart from a brief rebound in March and April, exports from China have been in constant decline since October 2022.

Imports into China also fell by 12.4% US dollar terms.

The threat of recession in the United States and Europe, combined with high inflation, has contributed to weakening international demand for Chinese products in recent months.

Chinese exports had fallen by 12.4% year-on-year in June.

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