China’s exports decreased by 7.5 % year over year, although the decline was primarily attributable to the basic effect: since March 2023, the comparison is distorted by the extremely high level of the month prior to the start of the year. In RMB conditions, China’s imports continue to follow a rising tendency after the great hop between 2019 and 2023.
Weakish earth demand is the possible culprit. German exports of consumer products, excluding cars, are currently at or near to crisis, and they dropped from a top of$ 815 billion in the second quarter of 2022 to$ 752 billion in the third quarter of 2023.
” Value of China’s export falls sharply on sliding rates”, the Financial Times headlined its record. Popular memes claim that China is experiencing depreciation as a result of overcapacity. According to a report from Reuters,” Export volumes edged up record highs despite a larger- than- intended year on year decline in export values,” according to analysts at Capital Economics, suggesting Chinese exporters are continuing to slice prices to keep sales despite persistently weakened local demand.
US Treasury Secretary Janet Yellen spoke to China about the idea that overcapacity in Chinese manufacturing is causing low prices, causing depreciation, and harming other countries ‘ companies earlier this week.  ,
No data are available for China’s trade level in March. China’s Statistical Bureau has limited data through February, and the Netherlands Central Planning Bureau, the world’s major cause for data on business volume, has published figures for only as soon as January.
The Netherlands Central Planning Bureau’s regular export data for the past ten years indicate a very close relationship between trade volume and the RMB complete of Chinese exports. That is, there have n’t been many discernible differences between the RMB export volume and the RMB proceeds of trade as of January 2024.
In the overall, there has been extremely little deviation in Chinese trade prices. In selected companies, including solar panel and Vehicles, to be sure, prices have fallen substantially, but that may indicate higher productivity and lower per product costs. More than half of all new business computers purchased international were installed in China in 2023.
China’s key consumer prices ( excluding food and energy ) rose by 3.8 % in February from the year- earlier month– scarcely a harbinger of recession.
The US creates an import price index based on Chinese imports. Since 2004, this has changed a few percentage points in either direction. The change in the exchange rate between China’s RMB and the US dollar accounts for the majority of the variation. The price index for Chinese imports was 100.5 as of February 2024, which is almost exactly where it was 20 years ago.
There is n’t a single piece of evidence suggesting that China’s excess capacity is causing goods deflation.