China's international trade fell 6.2% in September
What's the story
China's exports and imports took a hit in September, both dropping 6.2% compared to last year. Customs data revealed that exports fell to $299.13 billion (Rs. 24.9 lakh crore), marking the fifth month in a row of decline. Imports also dipped to $221.43 billion (Rs. 18.4 lakh crore). Despite these setbacks, China managed to post a trade surplus of $77.71 billion (Rs. 6.5 lakh crore), up from August's $68.36 billion (Rs. 5.7 lakh crore).
Details
Global economic recovery affects China's exports
Lu Daliang, a spokesperson for China's General Administration of Customs, explained that the shaky recovery of the global economy from the pandemic was the biggest challenge for China's exports. As central banks worldwide, like the US Federal Reserve and those in Europe and Asia, started raising interest rates last year to fight inflation, demand for Chinese exports weakened.
What Next?
China's economy and policy support measures
China's economy has been slowing down at a more gradual pace after its leaders enacted various policy support measures in recent months. The central bank has relaxed borrowing rules and lowered mortgage rates for first-time homebuyers, while also providing tax relief for small businesses. However, the property sector remains a drag on the economy, with sales plummeting and developers struggling to repay huge debts.