China’s trade continued to decline in September, but the drop was smaller than expected, according to customs data released on Friday. Exports fell by 6.2% in US-dollar terms compared to the same period last year, which is less than the 7.6% decline forecasted by analysts. However, imports also fell by 6.2%, slightly exceeding the 6% decline expected by experts. China’s trade has been struggling this year due to weak global demand for its goods and subdued domestic demand.
China’s exports have been declining year-on-year since May, while imports have not recorded a positive growth rate on a year-on-year basis since September last year. The country’s economic recovery from the pandemic has slowed down in the past few months, mainly due to a slump in the real estate sector. The International Monetary Fund (IMF) recently revised down its 2023 growth forecast for China to 5% from 5.2%, while maintaining a global growth forecast of 3% for the year. This news comes as China prepares to release September retail sales and third-quarter GDP figures on October 18.
In response to increasing tensions with the US and Europe, China has focused on boosting trade with regional partners in Southeast Asia and countries involved in the Belt and Road Initiative (BRI), which aims to develop infrastructure in participating nations. China claims to have trains running to 217 cities in 25 European countries and says cargo transported along those rail lines accounted for 8% of China-EU trade in 2022. Additionally, China reported that its imports and exports with Belt and Road partner countries reached $19.1 trillion between 2013 and 2022, with an average annual growth rate in trade of 6.4%. The third Belt and Road forum is scheduled to take place in Beijing, with the presence of Russian President Vladimir Putin.
