Economy China's exports are rising faster than expected
China's exports grew faster than expected in August. According to data from the Beijing customs authority, exports rose by 8.7 percent year-on-year to the equivalent of 309 billion US dollars.
10.09.2024, 06:48
SDA
This is the fifth consecutive month of growth in Chinese exports. This is a glimmer of hope for the economic recovery of the second largest economy.
Imports increased by 0.5 percent. Analysts had previously expected exports to increase by 6.6 percent, while they had assumed that imports would rise by 2.5 percent.
More sales, falling prices
The figures show that companies from China are selling more goods abroad. However, according to data published by the Beijing statistics authority on Monday, they are having to accept ever lower prices overall. Producer prices fell again in August by 1.8 percent compared to the previous year.
Producer prices have been falling continuously for almost two years. While concerns about deflation are growing in China, other countries are alarmed by the flood of cheap exports. For example, the EU and the USA recently imposed high tariffs on electric cars manufactured in China.
Beijing has been planning to restructure its economy for some time. In the hope of creating new growth drivers, the expansion of high-tech sectors such as renewable energies and electromobility is being promoted. However, the new sectors are struggling with overcapacity.
Fierce competition, little consumption
Many companies have emerged in the e-car industry and are now facing tough competition on the domestic market. Profits are also difficult to achieve as consumption is weakening, which is due to economic uncertainty.
The crisis is particularly severe in the real estate sector, which has long made a strong contribution to Chinese growth but is now experiencing a massive slump.
Millions of unsold apartments are standing empty and many companies in this bloated sector are insolvent. At the same time, the labor market is tight and young people in particular are finding it difficult to find employment that matches their qualifications.
