Surprising rise in Chinese exports in November
The weakening economy and inflation in Europe and North America in particular had led to a drop in demand for Chinese goods. According to the figures, this remained the case in November: exports to the USA were 13.8 percent below the previous year's level, while exports to Europe were 11 percent lower. On the other hand, exports to Russia rose by 50.2 percent.
In addition to the economic situation in Western customer countries, geopolitical tensions with the USA are also having an impact on Chinese foreign trade. The EU in particular is also trying to reduce its dependence on China or diversify its supply chains.
"Despite an improvement on the export front, it is not certain that exports will contribute (significantly) to growth next year," warned economist Zhiwei Zhang from Pinpoint Asset Management. "China needs to rely on domestic demand as the main driver."
However, Chinese imports fell again in November. Exports had fallen for eleven months in a row before rising in October. At minus 0.6 percent, the downturn now continued, which is seen as a sign of the weak phase for both domestic consumption and Chinese industry.
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Despite the challenging economic situation in both North America and Europe, China saw a more surprising increase in exports in November, particularly to Russia. This year-on-year comparison showed a 13.8% decrease in exports to the USA and an 11% decrease in exports to Europe, contrastingly, exports to Russia skyrocketed by 50.2%.
Geopolitical tensions with the USA and the EU's efforts to reduce its dependence on China or diversify its supply chains have also impacted Chinese foreign trade.
In the face of this improvement in exports, economist Zhiwei Zhang from Pinpoint Asset Management cautiously warns, "Despite an improvement on the export front, it is not certain that exports will contribute significantly to growth next year." China, thus, needs to rely on domestic demand as the main driver.
Despite this rise in exports, China's imports fell again in November, marking the twelfth consecutive month of decline in exports before the slight increase in October. This trend suggests the weak phase for both domestic consumption and Chinese industry, with a decline of 0.6% in imports.
The ongoing geopolitical tensions between China and the USA have posed an additional challenge to the Chinese export economy, which has been affected by rising inflation in both North America and Europe.
Experts suggest that the extremely high dependence of the Chinese economy on exports might negatively impact China's economic growth in the coming years. Thus, efforts to diversify the economy and boost domestic demand are becoming increasingly crucial.
Amidst these challenges, China is seeking to deepen its economic ties with countries in Asia and Africa, aiming to counterbalance the impacts of strained relations with Western nations.
Recently, numerous multinational corporations have declared plans to shift their manufacturing bases from China to Southeast Asia, aiming to reduce their dependency on the Chinese market and escape rising inflation, labor costs, and other economic factors that had previously made China an attractive export hub.
Source: www.stern.de
