The Chinese customs office reported a decline in China’s exports and imports during the January-February period due to the global economic slowdown and weakening domestic demand. According to the report, China’s exports fell 6.8% year-on-year, while imports fell 10.2%, worse than the 5.5% decline expected by analysts.
Despite the decline, China’s trade surplus in the January-February period increased to $116.88 billion from $109.7 billion in the same period last year. This figure was higher than the market’s expectation of $81.8 billion. The report also revealed that China’s trade surplus with the US reached $41.29 billion during the January-February period.
Throughout 2022, China’s trade surplus reached its highest level since 1950, with a 31% increase to $87.691 billion. The increase was attributed to exports rising by 7%, while imports only increased by 1%.
The decline in exports and imports during the first two months of the year was more significant than expected, reflecting the impact of the global economic slowdown on the Chinese economy. The drop-in imports was also due to the weakening domestic demand.
The report has raised concerns about China’s economic growth prospects as global demand continues to slow down. However, the Chinese government has announced various measures to stimulate the economy and boost domestic consumption, which could help offset the impact of the global economic slowdown.
In summary, the decline in China’s exports and imports during the January-February period has been attributed to the global economic slowdown and weakening domestic demand. Despite this, China’s trade surplus increased, which could help offset some of the negative impact on the economy.