Key Takeaways:
- Chinese exports have fallen in October despite market expectations of a 4.3% increase
- The world's largest exporter is feeling the heat of economic slowdowns in the US and EU
- The Chinese Yuan has lost 12% year to date against the USD
YEREVAN (CoinChapter.com) — China’s exports to the rest of the world again took a hit in October, as data revealed that the world’s largest exporter was left bearing the brunt of the meltdown.
According to China’s General Administration of Customs, exports from China declined by 0.3% last month compared to a year earlier. As a result, the Chinese Yuan is also on a steady decline. Meanwhile, imports to China declined 0.7% from a 0.3% gain in September, below the market forecast of 0.1%.
The latest figures reveal the slowest growth since May 2020, when China went under a complete lockdown to fight the Covid-19 pandemic.
China’s Exports Perform Worse Than Expected
The 0.3% slump in export numbers may not seem big. However, it is a massive reversal from the 5.7% gain in September. It is also well below analysts’ expectations of a 4.3% increase.
The turnaround has pulled China’s exports from $322.76 billion a month earlier to $298.37 billion in October.
According to data from the “World’s Top Exports,” the value of China’s total exports represented 14.1% of overall global exports in 2021.
The latest fall is not surprising, considering that some of its biggest importers are in economic turmoil. The United States, for example, remains the biggest importer of China. With an import value of $521 billion, the US accounted for 17.2% of China’s total exports.
As CoinChapter earlier reported, the US economy has taken a hit, with the apparent slowdown of the labor market. The Federal Reserve has also constantly increased its benchmark interest rates to fight high inflation.
The data released on Monday showed exports to the US fell 13% in October. Meanwhile, sales to the European Union also slumped by 9%.
Europe is also facing a financial crisis of its own. In addition, the ongoing war in Europe, fueled by the Russian invasion of Ukraine, has sent inflation to a record high of 10.7%.
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No Relief For Chinese Exports On The Horizon As The Yuan Falls
The Chinese export market is unlikely to recover anytime soon. Besides the fall in international demand, the slowdown also has domestic causes.
The world’s second-largest economy continues to impose large-scale lockdowns, which has impacted production. However, despite the recent worrying numbers, Chinese authorities and health officials have announced they will continue with the lockdown measures.
As a result of its lockdown policy, China is losing more manufacturing to Vietnam, Malaysia, Bangladesh, India, and Taiwan, the latest data in the CNBC Supply Chain Heat Map showed.
The slump in export has already impacted its local currency. According to Google Finance, the Chinese Yuan has lost over 12% against the United States Dollar in 2022.
