China’s exports have plunged the most in three years as higher interest rates worldwide dampen demand for Chinese goods.
Chinese exports fell 12.4 percent in June compared with a year earlier, customs data released on Thursday showed.
China is the world’s biggest exporter and the latest figures, after a 7.5 percent decline in exports in May, underscore the challenging outlook for the global economy amid rising interest rates.
China’s imports in June also declined, falling 6.8 percent, which was more than expected by economists.
Central banks in North America, Europe and Asia have hiked the cost of borrowing to bring living costs under control after inflation in many countries reached its highest levels since the 1980s.
Tensions with US
China’s industry is also facing pressure from heightened tensions with the United States, which has hit the Chinese tech sector with numerous trade restrictions over alleged national risks.
Lv Daliang, a spokesperson for the General Administration of Customs, said China’s trade had been affected by “a weak global economic recovery, slowing global trade and investment, and rising unilateralism, protectionism and geopolitics”.
Beijing has set a growth target of about 5 percent for this year amid tough economic conditions at home and overseas.
China’s economy officially grew 3 percent in 2022, one of its weakest performances in decades, as the country’s tough “zero COVID” policy of lockdowns and mass testing weighed on consumers and businesses.
