China Economy: China's exports have slowed in September due to weak global demand. This has raised concerns about economic growth in the world's second-largest economy. According to the Chinese Customs Office, exports grew 2.4 percent in dollar terms on an annual basis last month, while in August it had increased by 8.7 percent on an annual basis. Imports grew only 0.3 percent in September. Economists had estimated that exports would grow by about six percent and imports by about 0.9 percent. China's trade deficit stood at $81.7 billion in September. This is less than the figure of $91 billion in August. The Chinese government has been struggling to accelerate the economy since the end of the COVID-19 epidemic.

America and Europe tightened.

The US and Europe have recently raised tariffs on Chinese exports of electric vehicles and other products. This has worsened the trade situation, which is considered the engine of growth for China. Weak growth in imports indicates slow demand. One reason for this is the long-term slowdown in the real estate sector. Other data released on Monday showed a decline in inflation and wholesale prices for manufacturers. China's policymakers have announced several measures to boost the economy. This includes a provision of 200 billion yuan ($28.2 billion) from next year's budget for spending and construction projects. Finance Minister Lan Fan said over the weekend that the government is considering more steps to accelerate economic growth.

More steps need to be taken now

Economists believe Lan and other officials have not yet provided stimulus on the scale needed to pull the economy out of the sluggishness. According to a report by ING Economics, China's exports have increased by 4.3 percent year-on-year till September this year. The main reason for this is more than 20 percent growth in vehicle exports. But overall exports are slowing down. Referring to the government's target of about five percent annual economic growth this year, the report says that when this engine of growth is stopping, other sectors of the economy like investment and consumption will need to be increased to achieve the target of economic growth.