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China's export is dropping - Why no one is concerned?

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JP_mykayaplus wrote a column · Jul 13, 2023 08:05
China's export is dropping - Why no one is concerned?
Markets around the world are in a bullish mood.
After a softer CPI release, the markets seem to be in a jubilant mood.
But as we live in a connected world, I am surprised that no one is concerned about China's dropping export!
1. What is happening?
China's export is dropping - Why no one is concerned?
Imports do not look good either. Imports declined 6.8% in June from a year ago, also worse than expectations for a 4% decline and the 4.5% annual decline in May.
2. Why should we be concerned?
China is the global manufacturing hub. For so long, manufacturing and trade have been the backbone of the country.
A healthy global economy relies on China's economic health. It is almost impossible to do so without.
While the world is grappling with inflation, China is facing a divergence - even though the country reopened, the growth spurt is not there!
3. When China sneezes, everyone catches a cold
In Mandarin, there is a saying - 相依为命. It means we are all connected with each other in this globalized and capitalized world.
So, when will China's data hit the world economy's health?
Food for thought?
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