In July, China recorded an increase in imports, which exceeded preliminary expectations for the dynamic of this indicator, while the pace of export activity turned out to be less optimistic compared to forecasts.
The mentioned information was made public on Wednesday, August 7, by the customs of the specified Asian country.
Last month, exports of goods and services from China in dollar terms showed an increase of 7% compared to the result recorded for the same period in 2023. At the same time, experts interviewed by the media expected the corresponding figure to increase by 9.7% in July. It is also worth noting that Chinese exports showed faster growth rates in June. In the specified month, this indicator increased by 8.6%.
The volume of imports made by China in July increased by 7.2% in dollar terms compared to the result recorded a year ago. This indicator significantly exceeded the preliminary expectations regarding its dynamic. Analysts surveyed by the media predicted that Chinese imports would grow by 3.5% in July.
The volume of product shipments from the United States to the Asian country increased by 24% last month compared with the result for the same period in 2023. China’s imports from the Association of Southeast Asian Nations increased by 11% in July. The volume of product shipments from the European Union to the Asian country grew 7% last month.
Chinese exports to the United States and the European Union in dollar terms increased by about 8% year-on-year in July. It is worth noting that the mentioned indicator was recorded in both directions of supply of products from an Asian country. Chinese exports to the Association of Southeast Asian Nations increased by 12% in July compared with the result recorded in the same period last year. Currently, the mentioned region is Beijing’s largest trading partner.
Chinese car exports totaled 553,000 vehicles in July. This indicator increased by 26% compared to the result recorded in the same period last year. Chinese exports of home appliances increased by 17% last month. At the same time, external supplies of rare earths from the Asina country in July turned out to be on a downward trajectory, showing a decrease of 19%.
Crude oil imports to China increased by 8% year-on-year in July. Natural gas supplies to the Asian country rose by 6% last month.
In yuan terms, Chinese exports in July increased by 6.5% compared to the same period in 2023. Imports in the national currency of the Asian country rose by 6.6%. It is worth noting that in June, this indicator showed a drop of 0.6%. The corresponding result was a kind of consequence of weak domestic demand in the Asian country.
Currently, China’s economic system, which is the second largest in the world, is facing difficulties that affect the prospects of its dynamic. In this context, it is worth mentioning such realities as the crisis in the real estate sector, which turned out to be prolonged and showing signs of being characterized as a fundamental problem, and a low level of consumer activity in terms of the financial equivalent of the corresponding process. Another factor of pressure on China’s economic system is the growing tension in the space of geopolitical relations. Currently, there is a tendency for the gradual deterioration of the condition of interaction between Beijing and Washington in various sectors of international cooperation. The United States has restricted exports of advanced chips and equipment needed to manufacture products of the appropriate category to China. Against the background of these difficulties, export activity indicators are the most positive aspect of the current configuration of the existence of the world’s second-largest economy.
In the first half of 2024, China’s economic system showed growth of 5%. At the same time, retail sales growth slowed to 2% in June. Against the background of this indicator, doubts began to accelerate that Beijing would be able to achieve the target for gross domestic product growth in 2024, which was set by the leadership of the Asian country at about 5%.
Last week, during a conversation with media representatives, Chinese officials answered a question about plans to stimulate the development of the world’s second-largest economy by the end of the current year. In the context of the relevant topic of discussion, they stated that the implementation of existing measures would continue and paid attention to long-term goals for the enabling of advanced technologies and other new growth factors. The corresponding path of the Asian country is likely to be complicated by the above-mentioned limitation of equipment supplies, which was decided in the United States. At the same time, this path is not impossible and does not belong to the category of unconcerned dreams, which consist of a kind of fantastic worldview that does not coincide with the state of affairs observed in the space of objective reality.
An official from the National Development and Reform Commission, China’s economic planning agency, quoted by the media, said that currently, the world’s second-largest economy is facing problems related not only to external conditions but also to the structural transformations necessary to implement the process of moving towards high-quality development.
As we have reported earlier, China to Focus on Consumption.
