Beijing

For the fourth consecutive month, China’s exports have decreased as the “world's factory” battles sluggish domestic and international demand, the BBC reported on Thursday.

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According to government data, imports decreased 7.3 per cent in August and exports declined 8.8 per cent.

But the decrease was better than the previous month and not as bad as anticipated.

China is presently dealing with a number of post-pandemic issues, such as a real estate crisis and low consumer expenditure.

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Following the Covid19 pandemic and the current trade conflict with the US, there has been a decline in worldwide demand for products created in China. It is significantly affecting a crucial driver of economic expansion for the nation.

According to a US Census Bureau data released on Wednesday, China’s percentage of US goods imports dropped to its lowest level since 2006 in the year ending in July.

14.6 per cent of all imported commodities during that time period came from China. This is a decrease from the peak of 21.8 per cent seen in the year ending in March 2018, before Donald Trump, who was then the president, intensified the US-China trade war.

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The real estate sector in China is also experiencing a severe downturn as some of the largest developers are having financial difficulties.

Beijing has thus far refrained from implementing a significant stimulus programme to stimulate the economy.

Instead, it has chosen to implement a number of policies in recent months to support individuals and businesses.

The nation’s central bank has lowered loan rates, and Beijing has declared plans to permit a dozen of the nation's largest cities to lower the minimum down payment requirements for purchasers. Additionally, lenders have been urged to lower interest rates on existing mortgages.

Other initiatives, such as raising the personal income tax deduction for children's education and lowering the levy on share trading, have also been announced.

The Chinese state-run daily The Global Times published an article on its English-language website prior to the release of the trade numbers denouncing derogatory remarks made about the nation's economy by Western politicians and media.

“The reality is that Chinese economy is well on the recovery track with increasingly strong innovation and green development momentum, though the economy faces some difficulties and challenges under the impact of global economic slowdown,” BBC quoted it as saying.

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