In the case of exportsis about the strongest drop since February 2020.
The worth of them, measured in dollars, fell to the lowest level since April of this year ($296 billion), at which time a quarantine in the city of shanghai it caused strong disruptions in ports and industries, according to the statistics released by the Bloomberg and AFP agencies.
Likewise, imports decreased 10.6% to US$226,000 millionin the largest decrease since May 2020, which indicates that domestic demand remains weak.
Both figures left a trade surplus of US$ 69.840 milliona level that is lower than usual numbers.
Both the “Covid zero” policy imposed by the Chinese regime as the drop in demand Due to the global economic slowdown, influenced the meager results of Novembermonth in which, together with October, strong exports are usually recorded ahead of the season parties in the West.
It is expected, however, that local production and demand change course after Beijing announced today a general relaxation of anti-covid rules, with an abandonment of the restrictive strategy that, in addition to hitting the economy, led to a wave of protests throughout the country.
Among other measures, the magnitude and scope of PCR tests will be reducedand lockdowns will be minimized.
“The weakening of domestic and foreign demand, the disruptions caused by the coronavirus and an upward comparative base led to a perfect but expected storm for China’s exports and imports“, analyzed Bruce PangUS cabinet analyst Jones Lang LaSalle in dialogue with Reuters.
The data for this Wednesday represents Another blow to the Chinese economy because, although domestic consumption remained stagnant due to the restrictions of the pandemic and the crisis in the real estate sectorthe companies enjoyed a solid demand from abroad in the last two years.
Faced with projections that place the world economy in sharp slowdown in 2023, China you will not only need reverse its sanitary restrictions but should also analyze the possibility of a more expansionary monetary and fiscal policy.
The Politburodecision-making body of the Communist Party, pointed out in its meeting on Wednesday that will seek a turnaround in the economy for next year promising active fiscal policy and targeted monetary tools.
In that sense, Pang pointed out that the focus of the domestic economy and local consumption by the Chinese government responds to the low chances of a turnaround in exports in 2023.
“We estimate that the export volumes will continue to be under pressure until at least the first quarter of 2023“, indicated Daniel Richardsassociate director of the consultancy Maritime Strategies International.
Chen Zijian, sales manager for Guangzhou GL Supply Chain, a Chinese company that produces all kinds of consumer goods, said that, “if consumer prices continue to be so high in Western countriesit will be very hard for us to produce non-essential goods”.
Such is the drop in orders that even some factories plan to end their operations ahead of scheduleahead of the usual factory recess of the Chinese New Year, according to local media reports.
Despite the general drop in exportsThere are two items that escape the trend: shipments of cars and minerals rare rose 73.1% and 68.7%interannual respectively, between the months of January and November.
Source: Ambito
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