CHINA’S ECONOMY IS IN DANGER! IMPORTS AND EXPORTS TO SHUT SOON SOMETHING ABOUT CHINA AND ITS TRADE RELATIONS

1. CHINA’S ECONOMY IS IN DANGER! IMPORTS AND
EXPORTS TO SHUT SOON
SOMETHING ABOUT CHINA AND ITS TRADE RELATIONS
China is also commonly known as the People’s Republic of China and is one the
biggest country which is located in the eastern part of Asia. It is also the most
populous nation across the globe with a population exceeding 1.4 billion people as
of 2020. The capital of China is none other than Beijing which is located in Shanghai.
Beijing is considered the biggest financial center in Shanghai. China shares its
borders with nearly 14 countries and the longest is with Russia which translates to
almost 9.6 million km2.
Way back in the year 2013, China achieved the top position in the list of largest
trading nations of the world. According to Import Export Data of China, the total
imports, and exports of the country in 2013 were the highest and not less than any
other nation. In the year 2014 on 21st
May, China and Russia got associated with
each other and signed a gas deal worth USD 400 billion. To date, Russia is sending
natural gas to China and the trade relations are healthy and strong. Moreover,
China became the biggest trading partner of almost 125 countries across the globe
like the ASEAN nations where the contribution of China’s trade is close to USD 345
billion in the year 2015 which was almost 15% of the total trade of ASEAN nations.
WHY THE IMPORTS AND EXPORTS TO AND FROM CHINA ARE DECLINING
RAPIDLY?
As the Import Export Data and Global Trade Data underwent a big blow in the past
few years due to the pandemic called Covid-19, China faced a new and stronger
wave in late 2022 and early 2023 that left everyone mourning for their loved ones.
As China decided to uplift its zero covid policy in December 2022, people started
returning to their usual chores and unfortunately got infected from Covid-19 in
large numbers. This led to the collapse of the government and economy which
became a major setback for the nation.
After the elimination of the zero covid policy in the country, the first economic
indicator released by China is its Import Export Data reports which are not healthy
and show a continuous downward trend. According to customs reports, the exports

2. from the country in the first two months of 2023 have declined by 6.8% and
reached USD 506 billion when compared to exports in the first two months of 2022.
Not only exports but imports in the nation also declined and reduced by 10.2% to
USD 390 billion.
The exports of equipment which are used to process data, LCD screens, and circuits
showed a steep decline whereas, exports of automobile and refined oil showed a
growth which was of no use as the decline was more. On the other hand, if we
believe the numbers of Import Export Data with respect to imports, then It is clear
that consumption of edible oil and coal was grown in the initial two months of 2023
and so were imports, but the imports of semiconductor devices and steel items
dropped significantly. Imports of natural gas and crude petroleum also went down
by 1.3% and 9.5% respectively.
WHAT THE ECONOMISTS HAVE TO SAY ABOUT THIS DECLINING TREND?
As per economists, the decline in total imports was a result of weaker price points
as compared to the dollar. It is wrong if we blame the domestic demand for this
decline as it never went down. According to Zhou Hao, the chief economist for GNI
holdings, the trade statistics of China for the initial 2 months were mixed, and the
general trend is weak.
Another economist named Zhang Zhiwei said that the reduction in China’s exports
is due to the reduction in the international market and now the country has to
depend on its domestic demand. He added that the exports from China may remain
quite low this year which will affect the economic growth of the nation.
Zichun Huang who is also an economist says that exports from China in two months
have performed better than expected but there is a high possibility that they may
decline in the following year if there is an intervention of the virus again.
Just like them, many more economists also released their statements on this topic,
and we reached the conclusion that there is a situation of missed feelings and
perspectives among economists.
Commerce Minister of the country, Wang Wentao said that numerous companies
have reduced their orders to China and also the long-term contracts of the
companies are also getting shorter or canceled.

3. WHAT DOES TRADEIMEX ECONOMICS SAYS…
Based on the current scenario and market conditions it is clear that the Import
Export Data of China is declining rapidly which is creating a major obstacle in the
way of the country’s economic growth. The widespread transmission of the virus in
China in the last few months has forced other nations of the world to step back and
reduce their trade with China. Due to this trend, the exports of China are hit hard.
Now, the only option available to China is that it should work on increasing the
domestic demand for its products.
As the international market is reduced, the domestic market of the country has to
carry all the load. Now China has to build steps to trigger consumer spending by
any means so that the demand rises domestically but this thing seems difficult due
to trust and confidence levels along with impaired incomes of the people.
BONUS TIP FROM TRADEIMEX TO ALL ITS READERS
For further doubts and queries, contact us today. We specialised in providing
Vietnam Export Data or Philippines Import Data or the Global Trade Data of any
country at affordable cost. Get in touch with TradeImeX® Info Solution Pvt Ltd
today as we are ISO certified company and one of the best companies available
online that provide 100% accurate and reliable trade data from more than 70
countries including Turkey Export Data and US Trade Data at affordable prices. We
sell customized databases to our clients which are designed as per each customer’s
needs and preferences.
To stay connected with overseas market analysis news and trends, consider
subscribing to our blogs and keep visiting our website and social handles.
For more info –
Export import data