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Chinese customs data for October released on Monday revealed a surprisingly steep drop in both imports and exports, the latter contracting for the first time since the early days of the Wuhan coronavirus pandemic in 2020. Analysts said China’s ongoing coronavirus lockdowns, combined with a worldwide economic slowdown and disruptions from the Russian invasion of Ukraine, contributed to the dismal numbers.
Reuters thought the numbers from October might be “bleak” enough to cause some political trouble for the Chinese Communist Party, which refuses to admit its “zero-Covid” lockdown policy is a mistake, even as the rest of the world moves on from the pandemic:
Outbound shipments in October shrank 0.3% from a year earlier, a sharp turnaround from a 5.7% gain in September, official data showed on Monday, and well below analysts’ expectations for a 4.3% increase. It was the worst performance since May 2020.
The data suggests demand remains frail overall, and analysts warn of further gloom for exporters over the coming quarters, heaping more pressure on the country’s manufacturing sector and the world’s second-biggest economy grappling with persistent COVID-19 curbs and protracted property weakness.
Chinese exporters weren’t even able to capitalize on a prolonged weakening in the yuan currency since April and the key year-end shopping season, underlining the broadening strains for consumers and businesses worldwide.
