Despite a slight upturn in August 2016, China’s foreign trade problems are just beginning as pressure still mounts following a significant drop in the earlier months of 2016, reported Reuters.
August saw improvements for Chinese exports both internationally and domestically, but the further predicted economic problems for China will be felt all around the world in an already volatile economic environment.
Shen Danyang, a spokesman for the Ministry of Commerce, said: “Difficulties facing China's foreign trade are not short term, the downward pressure on foreign trade is still big and uncertain, and unstable factors are increasing.”
“We cannot be blindly optimistic about China's imports and exports and the situation is still complex and grim.”
Comparatively to 2015, China saw its exports, particularly to the European Union, decline as much as 18%, and its domestic trade also suffered significantly, sparking concern worldwide as to the long term effects on the world’s largest trading partner, with many countries conducting their own investigations into Chinese trade.
Ken Rogoff, former Chief Economist of the International Monetary Fund, stated in September, 2016 that the slowdown of the Chinese economy is the biggest threat to the global economy.
A worldwide trade and supply chain slump has seen both shipping and shipbuilding companies experiencing record losses, with some of the largest companies such as Hanjin Shipping, fall into receivership.