Sun, 27 Nov 2022

A flagging global economy keep squeezing the consumption of goods, the vice commerce minister warns

Demand for goods made in China is steadily declining as the global economy slows, Vice Commerce Minister Wang Shouwen said on Tuesday. He added that the nation still projects foreign trade to increase in the second half of 2022.

"The slowdown in external demand is the biggest uncertainty faced by China's trade," Wang said during a press conference in Beijing. "Our companies are reporting falling orders, as the demand from major markets is declining."

Soaring inflation across the world - along with other headwinds that suppress global demand - is dragging down an export boom that boosted the Chinese economy during the Covid-19 pandemic.

Foreign sales of Chinese goods in US dollar terms increased by a modest 7.1% in August, marking the weakest pace of growth since April, when a lockdown in Shanghai disrupted trade activity. Meanwhile, shipping costs have reportedly slumped to the lowest level in more than two years as the global economy keeps staggering.

China will definitely achieve growth in foreign trade in the last six months of 2022, according to Wang, who has cautioned that the economic slowdown in the US and Europe is a major headwind.

READ MORE: WTO warns of global recession

According to Wang, soaring inflation among the biggest economies has squeezed the consumption of goods, while many overseas corporations have been left with high inventories they still need to offload, thus hurting new orders. The official also noted that the demand for work-from-home equipment boosted by the pandemic is dropping.

He also said that Beijing has taken several steps to secure trade, including last month's big stimulus package and support for cross-border e-commerce firms to build overseas warehouses. Moreover, Wang said, swift growth in some sectors, including vehicles and solar batteries, has also demonstrated the country's good foundation in trade.

For more stories on economy & finance visit RT's business section

(RT.com)

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