In China, the economy continues to decline with weak consumer demand, slowing investment, and export enterprises facing enormous pressure. Despite official data showing growth in China’s exports, many export company officials have expressed a less optimistic view of the actual situation.
Responsible for an export company in China, Chen Fang told Dajiyuan that the “three engines” driving China’s economic growth – investment, consumption, and exports – have all been affected by the economic downturn. At the same time, the appreciation of the Renminbi has eroded the profits of enterprises.
For example, the Renminbi exchange rate has shifted from 7.2 yuan to the US dollar last year to approximately 6.7 yuan to the US dollar now. If calculating on a basis of $1 million in exports, after converting the US dollar receipts into Renminbi, the enterprise would receive 500,000 yuan less than before.
“The profits of export enterprises have decreased, posing a serious blow to our export enterprises, making business operations increasingly challenging,” said Chen Fang.
Xu Guang, a manager at a medium-sized foreign trade company in coastal areas, stated that after the United States imposed tariffs in 2025 and the European Union began levying parcel taxes in 2026, China’s export volume significantly declined.
“We have definitely experienced a year-on-year decline in exports. After the US imposed tariffs in August last year, our market share in the United States dropped from 30% to 15%; this July, the EU began imposing parcel taxes, leading to a decline in our market share in the EU as well.”
Xu Guang mentioned that while the markets in Europe and the US continue to shrink, consumer purchasing power in other regions has not improved, making it challenging to sustain business. “We are now left with only some underdeveloped regions, such as Africa, where there is little consumer purchasing power, making it impossible to conduct business. From various data perspectives, I believe our exports are declining.”
Xu Guang added that with fewer orders, employee salaries in the company have been lowered accordingly. “Last year, I provided employees with 13 monthly salaries, but this year I can only guarantee the basic wage. I am already struggling. If this continues, everyone’s income will definitely decrease, and the economy will continue to decline.”
According to data released by the General Administration of Customs of the Communist Party of China on September 8, in the first eight months of 2026, China’s total merchandise trade exports amounted to 20.17 trillion yuan, representing a 14.6% year-on-year increase.
However, export company owner Zhao Pu is skeptical of the official data showing continuous export growth. He said, “Don’t just focus on those figures. Since the start of the COVID-19 pandemic, I have not trusted a single punctuation mark of it.”
He pointed out that in the severe situation of the pandemic, major ports in China such as Shanghai Port and Yantian Port are stacked with empty containers like mountains. Logically, exports should have seen a steep cliff-like drop, so where did this growth in the data come from?
(All interviewees are pseudonyms)