China trade: tough times for exporters as ‘only the wearer knows where the shoe pinches’ amid tumbling shipments
- Exports suffered their biggest decline since the start of 2020, while imports also contracted more than expected
- Weak exports, caused by falling global demand, have increased the pressure for Beijing to boost domestic consumption in the rest of the year
A manufacturer and exporter of baking equipment based in Yiwu – home to the world’s largest small commodities market – had high hopes of a strong rebound when China reopened its borders to foreign travellers in January.
But David Fang’s hopes have gradually faded, despite endless streams of foreign importers coming to the city in the eastern Zhejiang province, and he embodies China’s trade outlook after exports tumbled by 12.4 per cent in June compared to a year earlier.
“When the [foreign importers] come back, they have become more sensitive to prices, and they will compare those from 10 suppliers [before placing an order],” Fang said.
“So from the surface, the market is thriving, but in reality, only the wearer knows where the shoe pinches.”
In the first half of the year, China’s exports declined by 3.2 per cent compared to a year earlier, the data released on Thursday showed.
The disappointing figures are yet another indicator of China’s sputtering post-pandemic economic recovery, which has lost momentum in the second quarter.