One sector, two opposite numbers, how do China's trade relations with Russia and the US show?

On January 12, China officially announced data on its economic and trade situation in 2023.

In 2024, China's trade activities will face more obstacles. (Source: iStock)

Reuters cited customs data showing that trade between China and Russia has reached more than $240 billion, exceeding the $200 billion target set by the two countries in bilateral meetings last year, and up 26.3% compared to 2022.

This is a record high in trade relations between China and Russia.

In contrast, trade between the US and China fell for the first time since 2019, down 11.6% from 2022 to $664 billion.

Wang Lingjun, a senior official at China's General Administration of Customs, said the country's trade activities will face more obstacles in 2024.

In addition, the released figures also showed that China's exports fell 4.6% in 2023, marking the first decline since 2016. Meanwhile, imports fell 5.5%.

On the same day, the National Bureau of Statistics of China (NBS) also released data showing that December was the third consecutive month that China recorded deflation. The consumer price index (CPI) decreased by 0.3% in December compared to the same period in 2022.

While deflation means goods are cheaper, it is a risk to the economy as a whole, as consumers tend to delay spending in the expectation that prices will fall further.

Falling demand can force companies to cut production, freeze hiring or lay off workers, and reduce inventory prices, which can reduce profits even if costs remain unchanged.

Inflation in China for the whole of 2023 is expected to increase by an average of 0.2%, in contrast to other major economies, which are recording strong price increases again.

Producer prices also fell 2.7 percent in December 2023, marking the 15th consecutive month of decline, the NBS said.

Source: https://baoquocte.vn/mot-linh-vuc-hai-con-so-doi-lap-quan-he-thuong-mai-cua-trung-quoc-voi-nga-va-my-the-hien-the-nao-257228.html