Status: 07.11.2022 11:00 a.m
Chinese exports surprisingly fell in October. In addition to the weakening global economy, this is also due to the Corona policy. Exports last declined more than two years ago.
China’s exports fell unexpectedly in October for the first time in more than two years. As the Beijing customs authority reported today, the exports of the second largest economy fell by 0.3 percent in US dollars compared to October last year.
Although analysts had expected a slowdown, they still expected exports to grow. The Chinese export machinery had already lost momentum in the previous months. Chinese exports last contracted in May 2020.
Imports also declined, falling by 0.7 percent compared to October of the previous year. It was the first year-on-year drop in imports since last March. In September they had increased by 0.3 percent.
Corona restrictions are also curbing exports
In October, China achieved its worst result since 2020 for both imports and exports. Experts cited weak global demand due to the Ukraine war and high energy prices as reasons. In addition, the continued strict corona restrictions in China would lead to ongoing problems in the supply chains. German companies have also been complaining for a long time that the lockdowns, which are often announced at very short notice, make their production and planning significantly more difficult.
Apple today provided a new example of how the corona measures are having a negative impact on the country’s exports. The US group admitted that it was struggling with significant delivery bottlenecks for the new iPhone 14 Pro during the important Christmas season. Production at the main plant in China is being affected by Covid restrictions. The plant of the Taiwanese contract manufacturer Foxconn in Zhengzhou is affected by the regional government’s corona lockdowns.
Exports to Germany fall by more than ten percent
The weak October trade numbers highlight the challenge for Chinese policymakers as exports are one of the few bright spots in the struggling economy. This increases the pressure on the manufacturing sector and threatens any meaningful economic revival amid the corona restrictions, the battered real estate market and the global recession risks.
China’s trade with Germany also fell noticeably again in October by 5.7 percent. Chinese exports to Germany fell by 10.9 percent. China’s imports from Germany, on the other hand, rose slightly by 0.5 percent. While Chinese exports to the European Union fell 7.7 percent, China’s imports from Europe fell 5.1 percent.
China’s foreign trade with the USA fell particularly sharply by 10.4 percent. Chinese exports to the US fell 12.6 percent, while imports from the US fell 1.5 percent.