Experts attribute the dramatic drop partly to the tariffs the U.S. imposed on Chinese goods.
CHINESE EXPORTS DROPPED 21 percent in February, marking the country’s worst month in three years.
The dramatic decrease was the weakest performance since February 2016, according to data released by the Chinese government. Sparked in part by China’s trade war with the U.S. and a slowing global economy, February’s exports were worse than expected.
The $250 billion tariffs imposed by the U.S. on Chinese products caused the value of goods shipped to America to fall sharply, CNN reported. However, the plunge can also be attributed to declining global demands of some goods.
Julian Evans-Pritchard, a China economist at Capital Economics, said that if the U.S. and China “finalize a trade deal soon, the outlook for exports remains gloomy,” CNN reported.
Chinese export troubles aren’t expected to improve, as major companies are looking to move their supply chains out of China in an effort to avoid the American tariffs.
February’s slump follows January’s unexpected rebound. Experts attribute the bounce back to companies rushing orders before the Lunar New Year holiday in China. However, according to CNN, accounting for that spike, performance during both months was still weak, and the struggle is likely to continue as demand wanes in major markets.