Chinese exports registered a 25.4% fall compared to next year. Similarly, imports also decreased in a 13,8%. Information during February could reflect certain distortions due to Chinese New Year celebrations, however, the tendency has been clear during the first two months of 2016. In this period, exports went down 17,8%, and imports fell 16,7% compared to last year.

Exports have reached its lowest point since 2009, reviving concerns about the global impact of a slowdown in the world’s second-biggest economy. The fall of 25,4% on exports is even worse than China’s previous lowest point in the middle of a global recession.

Imports continue in their progressive decline, now hitting 13.8% lower compared to last year. The cut is currently affecting the oil and mineral industries in developing countries.

According to some reports, information from February should be carefully consider. Chinese New Year celebrations, which freeze the country for a whole week, have exaggerated the weakness of exports. However, the sales of Chinese goods overseas have done poorly. What used to be the backbone of China’s rapid economic growth, now is in clear decline. According to the General Administration of Customs, China’s trade surplus during February was $32.59 billion USD, while January’s data registered $63.29 billion USD.

China’s reputation as the ‘factory of the world’ is now in question. Global demand is declining, therefore, production in China is also going down. Consequently, imports of commodities become less necessary, directly affecting the feeble economies of rentier states in the Global South.

February numbers will put pressure on authorities in China. The following months will be key to evaluate the year for China. During March and April, the economy will have to surmount the costs of a longer-than-usual Chinese New Year, in order to reach the goals for the year.

Sources:

http://www.theguardian.com/business/2016/mar/08/mining-shares-fall-china-exports-7-years

http://www.bbc.com/news/business-35751586

http://english.customs.gov.cn/newsroom/statisticsdetail/f78db55a-9c8f-4147-a714-3e5403563622

Annex Asia Publishing

publishing@annexasia.com

Image:

Tags: Inspections China, Inspections Asia, Quality Control China, QC China, Quality Control Asia, QC Asia, Factories China, Laboratory testing China, Inspectors China, Factory Audit, Product inspection China, Product inspection Asia, Initial Production Inspection China, During Production Inspection China, Power Banks, Container Loading Inspection China, Inspection standards China, Inspections standards Asia, Inspections India, Quality Control India, QC India, Laptop Cooling Pads, Manufacturers China