China's customs data released on Tuesday revealed a significant drop in the country's exports, plunging by 14.5% year-on-year in July. This marks the largest decline in shipments since February 2020. Furthermore, imports also fell by 12.4% during the same period, indicating a slowdown in the world's second-largest economy.
China has been grappling with a domestic market slowdown, except for a brief rebound seen in March and April. Since October of the previous year, the country has witnessed a consistent decline in its exports. Notably, its exports to the United States witnessed a substantial decrease of 23.1% year-on-year in July. Shipments to the European Union (EU) also experienced a decline of 20.6%, while outbound shipments to the Association of Southeast Asian Nations (ASEAN) dropped by 21.4%.
In the first seven months of this year, exports to the EU amounted to $288.9 billion (2.08 trillion yuan), reflecting a 2.6% decrease, as reported by the customs authority. These latest figures indicate that China's post-COVID recovery has lost momentum.
On a positive note, China's crude oil imports in July increased by 17% compared to the previous year, with crude shipments reaching 43.69 million metric tons or 10.29 million barrels per day (bpd). This rise in imports can be attributed to the period when China's economy was significantly impacted by strict COVID policies in July last year.
China's economic growth in the April to June quarter was a mere 0.8%, with record-high youth unemployment of over 20%. The official manufacturing purchasing managers' index, a crucial indicator of factory output, stood at 49.3 in July, indicating contraction as it fell below the 50-point mark.
