Chinese Exports Collapse As Country Continues Downward Spiral

China Government

The world’s second largest economy continues to suffer at the hands of poor trade performance. China’s trade surplus fell by 10 percent on the year to 263 billion yuan ($43.1 billion).

Exports have slipped to 8.9 percent year-on-year to 1.19 trillion yuan, while imports dropped 8.6 percent to 930.2 billion yuan.

A large part of China’s economic growth is based around exports.

A stronger yuan currency has hurt China’s exports by making products from the country more expensive.

“The yuan has been stronger against the euro, and it’s hurting Chinese exports to Europe,” Li Miaoxian, a Beijing-based economist at Bocom International Holdings Co., told Bloomberg News.

China’s economy expanded by 7.4 percent last year, its weakest growth number since 1990. The Chinese economy has grown just 7 percent in each of the first two quarters of 2015. Chinese officials believe the country will continue to maintain a 7.0 percent growth factor through the rest of 2015.

The People’s Bank of China, the central bank, in June announced its latest cut in interest rates, it has cut interest rates four times since November 2014.