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China’s foreign trade faces unprecedented challenges

China’s foreign trade faces unprecedented challenges

Even without any tariffs China is suffering all the consequences of its own negligence. Currently, world governments, primarily the United States and the European Union, are reviewing their trade relations with China. Meanwhile, closed borders and sluggish demand have already hit China’s foreign trade. "As the global epidemic spreads, international market demand has fallen significantly, and China faces unprecedented challenges in foreign trade this year," said Zhong Shan, the Commerce Minister of the People's Republic of China. "China's companies face extreme difficulties under the effects of the epidemic," added the politician. It seems like this is just the beginning. The country’s main trade partners no longer favour China since its government has covered the information about the spread of the coronavirus, while further attempts to hide the true extent of the problem have cost this world too much. The natural drop in demand amid the lockdown is likely to be aggravated by a boycott of Chinese goods by the countries most affected by the pandemic. Thus, Chinese exports have plunged by 9% over the first four months of this year, while imports shrank by 5.9% for the same period. China's exports unexpectedly increased in April driven by growing demand for individual means of protection. Meanwhile, the country’s imports dropped significantly.


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