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Chinese imports and exports fell in July compared to last year despite the reopening of the Chinese economy and a slow growing world economy. Although most consumer companies report good revenue growth numbers in China, aggregate data, such as imports, suggest low consumer demand. The Chinese government is trying to stimulate consumer demand but so far has shied away from large tax cuts or spending. The latest data could also signal global demand is low as China represents about 15% of global goods exports and these exports are declining. At the same time, this weaker short-term data does not have to indicate the future is grim as from 2014 to 2019 exports did not grow while GDP grew above 5.5% to 7.5% per year.

Source: General Administration of Customs China, July 2023.