China’s exports fell 12.4% in June compared to the same month last year, as global demand slowed.

Hong Kong –6 as demand weakened as the central bank raised interest rates to curb inflation, even as Chinese leaders struggled to keep the post-coronavirus recovery from stalling. China’s exports in May fell 12.4% year-on-year.

Imports fell 6.8% to $214.7 billion, according to customs data released Thursday. Exports totaled $285.3 billion, up slightly from the previous month. The trade surplus rose to $70.6 billion from $65.8 billion in May.

The slowdown in trade is adding to the downward pressure on the world’s second-largest economy. Global consumer demand weakened as the U.S. Federal Reserve and central banks in Europe and Asia hiked interest rates to bring inflation down from near multi-decade highs by curbing business and consumer activity. are doing.

Total trade, including imports and exports, fell by nearly 5% in the first six months from a year earlier. Exports fell by 3.2% and imports by 6.7% due to falling prices of primary commodities such as petroleum and sluggish domestic demand.

Exports to the United States fell 23.7% year-on-year to $42.7 billion, the lowest level in six months, while imports of American goods fell 4.1% to $14 billion. Politically unstable China’s trade surplus with the United States fell 30.6% to $28.7 billion.

Trade has also slowed due to tensions with the US government and restricted access to US processor chips and other technology, due to feuds with Beijing over security and China’s industrial policy. Chinese factories assemble most of the world’s smartphones and other electronic devices.

“Weak global demand for goods continues to weigh on exports, which we believe will decline further for now and bottom out towards the end of the year,” said Zhichung Fang of Capital Economics. said in the explanation. “But the good news is that the worst of the downturn in external demand is probably already behind us.”

The ruling Communist Party has set an official economic growth target of “around 5%” for this year, beating last year’s 3% expansion, the second lowest since the 1970s. Some economists have raised their growth forecasts to nearly 6% after March’s unexpectedly strong trade data.

In April, the government announced measures to help distressed exporters, including expanding available trade finance and facilitating cross-border e-commerce.

The five-month campaign, which started in late April, also aims to boost trade by improving logistics and reducing costs for exporters in 17 cities, including Beijing and Shanghai.