BRICS member China’s exports have experienced a rapid rise in 2024 boosting the nation’s growth prospects. The exports grew quickly in April and May this year with outbound shipments growing 6% year-on-year. In May alone, China’s exports saw an increase of 1.5% compared to April. The rise in numbers comes at a time when the Communist nation is struggling to navigate its native economy.
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BRICS: The Rise of China’s Exports in 2024
The latest data shows that BRICS member China is managing to uplift its $18.6 trillion economy at varying speeds. Its first quarter performance was beyond expectations growing 5.3% year-on-year after a change in policy measures. The latest development indicates that demand for Chinese exports is improving with a steady rise in overall consumption.
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However, its growth could face challenges as both the U.S. and Europe are threatening China with export tariffs. This puts the BRICS country in a spot as tariffs could curtail its growth leading to a slump in exports. In addition, the real-estate crisis is its biggest stumbling block after the fallout of its biggest developer Evergrande.
However, an analyst explained that tariffs from the U.S. and Europe will cause no harm to BRICS member China’s exports. “Global demand is giving a bigger boost to China’s economy than we had anticipated this year. Foreign tariffs will make little difference to aggregate export performance in the near term,” said Julian Evans-Pritchard, Head of China Economics at Capital Economics to Reuters.
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“We now think that China’s economy will expand 5.5% this year as a result,” he added. Therefore, China’s growth can bolster the BRICS alliance making the group stronger in the international markets.
BRICS is looking to take the lead in becoming the top exporter of goods to developing countries around the world. Once the feat is achieved, they might intend to convince them to settle payments in local currencies and not the U.S. dollar.