China’s exports have fallen by more than 10%, leading to weak consumer demand in the international market
Recently, China’s foreign trade import and export data from January to October 2023 was released by the Chinese Customs.According to statistics, in the first 10 months of this year, China’s foreign trade import and export index reached 34.32 trillion yuan, an increase of 0.03% year-on-year. Among them, exports reached 19.55 trillion yuan, an increase of 0.4%, and the trade surplus reached 4.78 trillion yuan, an increase of 3.2%. In addition, in October this year, China’s import and export of goods reached 3.54 trillion yuan, an increase of 0.9%. Among them, exports decreased by 3.1%; Imports increased by 6.4%.
From the above data, it can be seen that consumer demand in the international market is in a weak state, and the global economy is still in the stage of recovery. As a result, although China’s foreign trade exports have slightly rebounded compared to last month, they are still in a downward trend.
ASEAN, the largest trading partner
In the first 10 months of this year, the total trade value between China and ASEAN was 5.23 trillion yuan, an increase of 0.9%. Among them, exports to ASEAN reached 3 trillion yuan, an increase of 0.6%. China’s export growth to ASEAN has been minimal, mainly due to the impact of repeated epidemics and inflation, leading to weak consumption in ASEAN countries.
The second largest trading partner – the European Union
The total trade value between China and the European Union was 4.59 trillion yuan, a decrease of 1.6%, accounting for 13.4%. Among them, exports to the European Union reached 2.94 trillion yuan, a decrease of 5%. The EU consumer market has also shown signs of weakness, which cannot be separated from the rise in energy prices, and the overall recovery of the European economy is slow.
Third largest trading partner – United States
The total trade value between China and the United States was 3.86 trillion yuan, a decrease of 7.6%, accounting for 11.2%. Among them, exports to the United States reached 2.91 trillion yuan, a decrease of 9.9%. The domestic consumer demand in the United States is greatly influenced by the continuous interest rate hikes by the Federal Reserve and the historically high interest rates on US bonds.
The fourth largest trading partner – Japan
The total trade value between China and Japan was 1.84 trillion yuan, a decrease of 6.5%, accounting for 5.4%. Among them, exports to Japan amounted to 919.36 billion yuan, a decrease of 2.9%. The problem of social aging in Japan is becoming increasingly serious, and there is a phenomenon of shrinking consumer demand in the domestic market. The economic recovery is weak, and the decline in China’s exports to Japan may further decline.
Russia’s imports from China have surged by 52%, with the most impressive export product being automobiles
It is worth mentioning that according to a report on the website of today’s Russian television station on November 7th, the trade volume between Russia and China increased by more than 25% year-on-year from January to October this year, reaching $196.5 billion for the first time.
According to the General Administration of Customs of China, from January to October this year, Russia’s exports to China reached $106.4 billion, an increase of 12.4%; China’s exports to Russia reached nearly 90.1 billion US dollars, an increase of 52.2%.
Over the past decade, China has been a key trading partner of Russia. This year, among the products exported by China to Russia, the most eye-catching one is automobiles.
According to the Russian Federal Customs Administration, 92% of foreign vehicles imported by Russia currently come from China. In 2022, the production of passenger cars in Russia decreased by 67% due to sanctions. The Russian central bank believes that “this is largely due to the decrease in incoming assembly caused by the withdrawal of foreign companies”. The Russian central bank estimates that the production of local brands in Russia has decreased by about 40%, mainly due to a shortage of parts. In addition, foreign automakers have stopped production in Russia, and sanctions have also led to a significant reduction in car imports from Europe, South Korea, and Japan.
Not only cars, but also China holds an important position in the market share of Russian mobile phones.
According to statistics, more and more Russians are choosing to purchase Chinese mobile phones. By the second half of 2023, the market share of Chinese smartphone manufacturers in the Russian market will exceed 70% in terms of quantity, compared to 55% in the same period last year. The three most popular Chinese brands are Xiaomi, Realme, and Tecno.
Focusing on automotive components and 3C electronics to gain a significant advantage in the export market
According to the fact that the two popular products imported from Russia to China are automobiles and mobile phones, the export opportunities of fastener enterprises are mostly concentrated in the fields of automotive parts and 3C electronics.
In 2023, automobile exports are expected to reach 4.5 million units, making China the world’s largest exporter of automobiles for the first time. The momentum of “sailing to the sea” has become increasingly fierce in the automotive industry this year. For enterprises in the automotive industry chain, how to seize this rare opportunity can be considered a major strategy for high-quality development of enterprises.
As a supplier of automotive enterprises, how to cooperate with Dongfeng to achieve a win-win cooperation situation is also a development strategy worth considering.
New energy and green environmental protection remain key breakthroughs for fastener enterprises
The terms “new energy” and “green environmental protection” are probably quite familiar to various fastener companies. According to the analysis company “Automotive Statistics” in Russia, only 9% of the new light vehicles sold in Russia at the beginning of 2022 were Chinese brands, while in September 2023, the proportion of Chinese brands had reached 54%. Moreover, China’s access to energy is relatively dependent on imports from other countries, and the development of a new energy economy is inevitable.
Post time: Nov-22-2023