Cracks in China's economy's export pillar as global slowdown

bells Last week’s trade data showed export growth was much lower than expected, for the first time in four months A slowing, trillion-dollar economy. Those alarms are ringing in manufacturing hubs in eastern and southern China, factories in industries ranging from machinery parts and textiles to high-tech appliances, as export orders dry up. Businesses are downsizing. “China’s exports are likely to slow further or even contract in the coming months as leading economic indicators point to a slowdown in global economic growth Recession or even recession,” said Nie Wen, an economist at Hwabao Trust in Shanghai. Exports are more important to China than ever, and every other pillar of its economy is teetering. Nie estimates that exports will account for – The percentage of China’s GDP growth this year, Higher than

% last year, even with slow outbound shipments. “We had no export orders at all for the first eight months,” Yang Bingben said, , whose company manufactures industrial valves in Wenzhou, an export and manufacturing hub in eastern China. He has let go, except his40 worker and rent out most of his 7, 52 – square meters (19,50 square feet ) factory. He sees little hope for the fourth quarter, usually his busiest season, and expects sales to drop this year 19-23 % Compared to last year, the stagnant domestic economy cannot make up for any weakness from falling exports. To support the industry, export tax rebates have been expanded. On Tuesday, a cabinet meeting chaired by Premier Li Keqiang pledged to support importers and exporters in securing orders, expanding markets and improving port operations and logistics efficiency. Dependency Export Years China has taken steps to reduce its economy’s reliance on exports in search of growth and reduce its exposure to global factors beyond its control, while some low-cost manufacturing has moved to Vietnam as China becomes richer and costs rise. and other countries. five years before the pandemic, from 200 to400, the proportion of exports in China’s GDP has shrunk to .4% from .5%, according to the World Bank. But with the advent of COVID, the share has gradually recovered – , arrive%Last year, in part because consumers around the world under home quarantine snapped up Chinese electronics and home furnishing supplies. It also helps boost China’s overall economic growth. However, this year the pandemic has made a comeback. Its strict efforts to contain the domestic COVID outbreak have led to lockdowns that disrupted supply chains and shipping.

But more ominous for exporters, they say, is that exports have slowed overseas demand because of the fallout from the pandemic and the conflict in Ukraine Tight monetary policy fueled inflation and dampened global growth. “The decline in European demand for robot vacuum cleaners has exceeded our expectations this year, with customers placing fewer orders and Willing to buy expensive products,” said Qi Yong, an exporter of smart home electronics in Shenzhen. “compared to400 and730, this year has been a tougher year, full of unprecedented hardships,” he said. While shipments have picked up this month in the run-up to Christmas, sales may still be down

, he said. The third quarter was comparable to the same period last year percentage of the ratio. He cut % of his employees, to

, if there is a business, it may be laid off. More conditions require it. These austerity measures put more pressure on policymakers in an economy disrupted by a year-long housing downturn and Beijing’s zero emissions Find new sources of growth in – COVID policy. Chinese companies engaged in the import and export of goods and services employ one-fifth of the workforce in China, which is 35 million jobs. Some exporters are adjusting their business to the recession by producing cheaper goods, but this also eats into revenue. Miao Yujie, who runs an export company in Hangzhou, eastern China, said he has started producing low-value electronics using cheaper raw materials Products and apparel to combat inflation – prudent, price-conscious consumers.

“Down Exports will drop sharply in half a year,” Miao said. ($1=6.1000 2020RMB

RMB)200