China suffers first export drop in seven years with 4.6% fall in 2023

China’s exports fell by 4.6 percent to $3.38 trillion in 2023 from $3.59 trillion in 2022, according to data that China’s customs administration, the General Administration of Customs, released on Friday. Its exports have decreased for the first time in the previous seven years. China’s annual total imports decreased to $2.5 trillion in 2023 from 2022, a 5.5% decrease. In 2022, the overall value of imports amounted at $2.7 trillion, the paper added. The information was released just a few weeks after Chinese President Xi Jinping acknowledged on New Year’s Eve that the country’s economy is experiencing challenges due to slowing growth and unemployment. China’s youth unemployment rate reached a record 21.3% in June 2023. Beijing also had to deal with a financial burden on local governments, a real estate market crisis, and the threat of declining global demand for goods during the year. The World Bank released its Global Economic Prospect report on Tuesday, stating that the half-decade between 2020 and 24 is expected to be the lowest in 30 years. In 2023, China’s exports to the US, the EU, ASEAN nations, and Japan all fell. Chinese exports to the US experienced the sharpest decrease, down 13.1% in 2023 compared to 2022. China’s total exports to the US were valued at $581.7 billion in 2022 and $581.7 billion in 2023. Beijing’s total exports to the Association of Southeast Nations (ASEAN) decreased by 5% in 2023 to $523.67 billion from $567.28 billion in 2022, while its exports to Germany decreased by 13% to $100.5 billion in 2023 from $116.2 billion in 2022. The ten countries of ASEAN, which are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, are intended to foster economic and security cooperation. China’s exports to Russia, on the other hand, increased by 46.9%, the biggest percentage gain for the year. The total value of exports to Russia was $76.1 billion in 2022 and increased to $110.97 billion in 2023. China’s exports to India increased by 0.8 percent in the period from January to December 2023. The Chinese government passed a law on foreign relations on July 1, 2023, which gives it the authority to impose trade restrictions for the sake of internal interests, sovereignty, and national security. Regarding rare earth elements (REEs), China holds a monopoly. The Lanthanide series comprises 15 elements in the periodic table that are essential to developing technology for both military and civilian use. Additionally, it has a history of using leverage as a weapon to force a particular result.