In June 2023, China released trade data showing growth in both exports and imports, showcasing its adaptation to ongoing trade tensions with the US. These figures illustrate a shift in trade flows.
Key Trade Figures
In June 2023, China's exports grew by 5.8% year-on-year, surpassing analysts' forecasts of 5%. This marked the first increase in imports this year, rising by 1.1%, although economists anticipated a growth of 1.3%.
China's Strategy on Foreign Markets
Exports to the US continued to decline, dropping by 16.1% in June, marking the third consecutive monthly fall. However, China is finding demand in other markets: exports to Southeast Asia surged by 16.8%, and to the European Union by 7.6%.
Rare Earth and Other Goods Exports
In June, rare earth exports rose by 60.3% compared to the previous year. Additionally, steel exports also grew by over 10%, reaching 9.7 million tons. However, coal imports fell to the lowest levels due to weak domestic demand.
The trade data for China in June 2023 highlights the country's ability to adjust to economic challenges while redirecting trade flows. However, economists caution that these gains may weaken due to the uncertainty surrounding US trade policies.
