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BUSINESS EYE JULY 21, 2023 | The Indian Eye 30

India-China trade takes a bad hit as

exports tumble in post-Covid scenario

China’s exports tumbled 12.4 per cent in June from a year earlier amid weakening demand following

increasing interest rates by central banks to curb inflation

OUR BUREAU
New Delhi/Shanghai
he India-China trade, which
in recent years rose sharply
Tdespite bilateral tensions over
the border dispute, showed the first
signs of a slowdown in years falling
by 0.9 per cent in the first half of this
year. This came as China’s overall
foreign trade declined by about five
per cent as its economy struggled to
recover from Covid blues.
China’s exports to India in the
first half of this year totaled $56.53
billion compared to $57.51 billion
last year registering a decline of 0.9
per cent, according to the data re-
leased by Chinese customs on Thurs-
day.
India’s exports to China during
the same period totaled $9.49 bil-
lion compared to $9.57 billion last
year. The trade deficit in the first half
of 2023 too declined significantly to
$47.04 compared to $67.08 billion
last year. Last year was a bumper year
for India-China trade as it touched Last year was a bumper year for India-China trade as it touched an all-time high of $135.98 billion despite the continued chill in the bilateral ties (ANI)
an all-time high of $135.98 billion de-
spite the continued chill in the bilat-
eral ties over the military standoff in Chinese customs data released sector earlier this year, fell by 16.86 for immediate growth in global de-
eastern Ladakh in May 2020. Thursday showed imports slid 6.8 per cent compared to a year earlier. mand,” The Post quoted him as saying.
The total India-China trade in per cent to $214.7 billion. The disap- Exports to the European Union, Lu added that China’s economy
2022 overtook the $125 billion mark pointing data is yet another indicator declined by 12.92 per cent year on is resilient and revitalizing and that
a year earlier by registering an 8.4 of China’s sputtering post-pandemic year and the United States tumbled the foreign trade sector would still
per cent increase. New Delhi’s trade economic recovery, which has lost 23.7 per cent from a year earlier to head towards a positive direction in
deficit with Beijing crossed for the momentum in the second quarter, $42.7 billion. China’s trade surplus the longer term.
first time a $100 billion mark despite analysts told the Hong Kong-based with the US narrowed by 30.6 per China had hoped for a quick
frosty bilateral relations. South China Morning Post. cent to $28.7 billion, according to the economic recovery after the gov-
The trade deficit for India stood “The latest data in the developed customs data. ernment relaxed strict COVID re-
at $101.02 billion in 2022 crossing the countries shows consistent signals However, exports to Russia in strictions and reopened its borders
2021 figure of $69.38 billion. of further weakness, which is like- June increased by 90.93 per cent com- six months ago. However, China’s
The slowdown of India-Chi- ly to put more pressure on China’s pared to the same month last year. hopes have been dampened by weak
na trade in the first half of this year exports in the rest of the year,” said China’s imports also fell by 6.8 external demand.
came as China’s total trade includ- Zhang Zhiwei, chief economist at per cent in June from a year earlier Although China witnessed pos-
ing imports and exports fell nearly 5 Pinpoint Asset Management. to $214.7 billion, down from a fall of itive annual growth in March and
per cent from a year earlier in dollar “China has to depend on domes- 4.5 per cent in May. April. However, economists warned
terms. While exports slipped 3.2 per tic demand. The big question in the Releasing the data, General Ad- that this is not the full picture. The
cent and imports declined 6.7 per cent. next few months is whether domestic ministration of Customs spokesman comparison has been made from a
Also, China’s exports tumbled demand can rebound without much Lu Daliang said China would be fac- low base when a lockdown was imple-
12.4 per cent in June from a year stimulus from the government,” ing more pressure to boost the stable mented in Shanghai in 2022. The de-
earlier amid weakening demand fol- Zhang told the Post. growth of foreign trade in the latter velopment comes as companies have
lowing increasing interest rates by Shipments to the Association of half of the year. “Inflation is still prom- been intending to diversify their sup-
central banks to curb inflation as the Southeast Asian Nations, which is Chi- inent in developed world economies, ply chains from China. Trade tensions
Chinese economy struggled to stage na’s largest trade partner and one that geopolitical conflicts are still taking between US and China have also
post-Covid recovery. provided major support to its export place and there is not enough drive sparked concerns among businesses.

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