China’s export growth hit a five-month low in September 2024, with overseas shipments rising by 2.4%, a significant drop from the previous month. This slowdown reflects weakening demand from major trading partners and rising trade barriers against Chinese goods. Exports to the European Union grew by only 1.3% in September, while shipments to Japan fell by 7.1%.
Despite these challenges, Chinese officials remain optimistic about the country’s export performance, which has grown for six straight months and reached a record high for the year-to-date period. The broader economic context reveals an uneven recovery in China, with weak domestic demand and a prolonged property sector slump contributing to the challenges.
The central bank has cut interest rates to stimulate economic activity, while China’s imports have remained sluggish, edging up by only 0.3% in September. The combination of slowing exports and sluggish imports paints a complex picture of China’s economic health.
As China navigates these economic challenges, the world watches closely. The upcoming release of third-quarter GDP statistics will provide further insight into China’s economic trajectory and efforts to achieve its growth target of “around 5%” for the year.