China witnessed a significant contraction in its exports last month, marking the fastest decline since the onset of the COVID-19 crisis. The weak state of the global economy has intensified the pressure on Chinese policymakers, compelling them to consider implementing fresh stimulus measures. According to the China Customs Bureau, outbound shipments from the world's second-largest economy recorded a 12.4% year-on-year decline in June, following a 7.5% drop in May. Additionally, imports fell by 6.8%, exceeding the expected 4.0% decline and surpassing the 4.5% fall seen in the previous month. Notably, China's exports to the United States, a crucial trading partner, suffered the most during the first half of the year, primarily due to escalating tensions surrounding chip technology and other issues. However, exports to Russia experienced a notable surge during this period.
