75: China Export Analysis - Fundamental and Technical OverviewThe European Union (EU) and the United States have increased scrutiny and imposed higher tariffs on Chinese imports, particularly electric vehicles and strategic materials like gallium and germanium. These measures are designed to protect domestic industries from what are perceived as unfair trade practices and subsidies by the Chinese government.
Additionally, the EU's new Critical Raw Material Act and battery regulations aim to reduce dependency on Chinese imports and secure supply chains for critical technologies. These regulatory changes have led to a noticeable decline in Chinese exports to the EU.
In response, China has imposed export restrictions on key materials, further straining trade relations. These geopolitical tensions and trade barriers have significantly impacted China's export figures.
Currently, China's export trend is showing a downward trajectory. The export figures have struggled to reach the $350 billion mark and are at risk of dropping significantly lower, potentially towards the $140 billion level.
Chart Overview:
Trend Line: A clear downtrend is visible on the chart, with lower highs and lower lows indicating sustained pressure.
Support and Resistance Levels:
Resistance: The $350 billion level is the upcoming resistance. That has not yet been reached.
Support: Immediate support is observed around $250 billion. A break below this level could accelerate the downward move towards $140 billion.
Will We Reach $350 Billion or Go Lower?
Given the current economic and geopolitical landscape, it seems still likely that China will reach the $350 billion export mark in the near term because there has not been a really corrective wave in the chart. But the downward pressure from increased tariffs, export restrictions, and the EU's push for supply chain independence are significant hurdles. If these conditions persist, a further decline is a plausible scenario.
