China: Growing Economic Challenges Will Strain Foreign Trade Even More

Foreign trade is slated for a rough year ahead, warns China, as unpredictable demand— coupled with surging inflation and labour shortages— are expected to further weigh down on the global economy.

According to Reuters, which cited China’s Commerce Minister Wang Wentao, foreign trade will experience substantial pressure throughout 2022, as uncertain demand may not align with manufacturing capacity. “This year, the pressure on foreign trade will be huge and the situation will be very severe,” he said during a press conference on Tuesday. Worsening labour shortages and rising input costs have also strained China’s small and medium-sized businesses, impacting their capacity for foreign orders, Wang continued.

In 2021, China’s economy benefited from a substantial boost in exports fuelled by the global recovery from the Covid-19 pandemic. The country reported the largest trade surplus on record, and the best GDP growth in over ten years. However, that momentum began to lose its lustre, as consumption started to slide, with retail sales only increasing 1.7% in December— substantially below estimates calling for a gain of 3.7%, and less than November’s growth of 3.9%.

As a result of uncertainties surrounding global trade, China must “do everything possible” to ignite domestic demand for goods and services this year, Wang explained, adding that the communist country will make its markets more accessible to foreign investment for its industrial sector.


Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

US and China Teetering on the Edge of a New Cold War Amid Coronavirus Pandemic

As the blame game over the origins of the coronavirus between the US and China...

Friday, May 15, 2020, 05:55:00 PM

‘The Big Short’ Michael Burry: Tesla’s Bitcoin Purchase Was A Distraction From Quality Control Complaints

Michael Burry, the infamous hedge fund manager who successfully predicted the US housing market collapse...

Wednesday, February 10, 2021, 05:39:00 PM

China’s Debt Trap Diplomacy At Play In Zambia’s $1.5 Billion Loan Restructuring

In a move marking a significant milestone in its efforts to revamp debt, Zambia has...

Friday, September 27, 2024, 02:38:00 PM

Nasdaq Stops Chinese Firms’ IPOs While Probe On Stock Rallies Ensues

The Nasdaq has halted the preparations for at least four small Chinese companies’ initial public...

Monday, October 24, 2022, 01:33:00 PM

India Lures Tesla With Offer of Cheaper Manufacturing Costs Than China

In an effort to increase India’s production capacity, the country’s transport minister has made an...

Friday, March 5, 2021, 11:47:00 AM