Chinaaxis of International Trade and the first destination for Peruvian copper shipments, is facing a downward trend, according to official information. The General Administration of Customs of that country has revealed that the value of commercial exchanges in dollars, between the Asian giant and the rest of the world, contracted 13.6% year-on-year in July.
In the breakdown of this commercial exchange, exports had a decline of 14.5% in the seventh month of the year —quite close to what was glimpsed in February 2020—, while imports could not contain a fall of 12.4%numbers worse than those expected by various global specialists.
In the photograph of the first seven months, trade in dollars shows a drop of 6.1%, although in this accumulated data it is imports that experience a greater drop (-7.6%) than exports (-5% ).
Multiple factors would be influencing this negative trend for Chinese trade, which during the last three years has used its exports to get out of a global crisisplagued by international conflicts.
Among them are the ongoing inflation throughout the world, the weakening of the yuan against the dollar, spikes in interest rates in some economies and the slow recovery of some of the world consumer powers, which would have had their peak at the beginning of the third quarter.
China: no options
The Chinese real estate market, one of the most galloping sectors in recent years for its economy, is currently hit.
Another of the affected sectors is manufacturing, which also fell for four consecutive months, according to the Purchasing Managers’ Index (PMI).
Finally, the fears surrounding a recovery that is already confirmed will take longer than expected. They have affected the prices of copper and oil, in addition to the global stock exchanges.
Investors await new reports
Investors will be waiting next week for the publication of inflation data for July in large economies, such as the United States or China.
China’s economy grew 0.8% qoq in April-June, while youth unemployment has hit record highs of more than 20%.
Source: Larepublica
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