China’s Exports Fall Again, Imperiling Its Economic Recovery

The Numbers

China’s exports dropped 14.5 percent in July from the same point last year, the biggest decline since February 2020, when the coronavirus pandemic sent the world into lockdown and tangled global supply chains. Its imports fell by 12.3 percent during the same period.

Exports to the United States declined 18.6 percent compared with the same period last year, while shipments to the European Union fell 5 percent. Exports to Russia increased more than 70 percent.

Mexico and Canada surpassed China this year as the United States’ top trading partners.

Why It Matters

Officials in Beijing have been trying to foster a rebound from an economic slump after nearly three years of pandemic restrictions. After China ended its lockdowns last December, many expected the economy to bounce back, but recovery has been halting.

A real estate crisis and weak spending by consumers have put pressure on Beijing to increase exports to help stabilize the economy. But the trade numbers released on Tuesday suggest weak demand may exacerbate a global slowdown.