Hong Kong – China experienced a decline in its full-year exports for the first time since 2016, as global demand decreased. Chinese customs figures released on Friday revealed that exports in 2023 amounted to $3.38 trillion, a 4.6% decrease compared to the previous year. This decline follows a 7% increase in exports in 2022. The last time China recorded a decline in overseas shipments was in 2016, when exports fell 7.7% due to weak demand.
China also saw a 5.5% drop in imports last year, reaching $2.56 trillion. Despite this, the country still maintained a trade surplus of $823 billion, making it the world’s second-largest economy. Lyu Daliang, a spokesperson for the General Administration of Customs, attributed the decline in exports to the weak global economic recovery and sluggish external demand. He anticipates that China’s exports will continue to face difficulties in 2024, as global demand is expected to remain weak and protectionism and unilateralism hinder the sector’s growth.
Despite the decline in exports, there is a glimmer of hope. In December, exports increased by 2.3% compared to the same month in the previous year, signifying a second consecutive month of growth. This suggests a slight improvement in the global appetite for Chinese goods. It is worth noting that Chinese exports had experienced a six-month consecutive decline before November.
The United States remained China’s largest single-country trading partner in 2023, accounting for 11.2% of total trade. However, this value decreased by 11.6% compared to 2022. China’s trade with the Association of Southeast Asian Nations (ASEAN) and the European Union accounted for 15.4% and 13.2% of total trade, respectively.
China also witnessed a remarkable surge in the value of automobile exports, with the total value increasing by 69% last year. This was the highest growth rate among all categories. The country shipped 5.22 million vehicles in 2023, a 57% increase from the previous year. Lyu attributes this growth to the rising demand for electric vehicles, stating that one out of every three cars exported by China is an electric passenger vehicle.
Looking ahead, Lyu expressed confidence in China’s auto industry, stating that it possesses a strong competitive advantage and can provide more innovative products to meet the needs of global consumers.
While China’s decline in exports for 2023 reflects global economic challenges, the slight improvement in December suggests a glimmer of hope for the country’s export sector. As China continues to navigate weak global demand and protectionist measures, the world will be watching to see how the country adapts its trade strategies in the coming year.