As Beijing Customs reported Monday, Chinese exports unexpectedly fell in October for the first time in more than two years. As a result, exports of the second largest economy fell by 0.3 percent in the same month last year. While analysts had expected a slowdown, they still expected at least a slight growth. Imports also fell by 0.7 percent. Chinese exports last contracted in May 2020. Observers cited weak global demand as the reason for the decline.
But the ongoing strict corona restrictions in China also led to lingering problems in supply chains. Apple gave an example on Monday of how the corona measures are negatively impacting the country’s exports. The US group admitted that it struggled with significant delivery problems for the new iPhone 14 Pro during the important Christmas season. Production at the main factory in China is affected by Covid restrictions. The Zhengzhou factory of Taiwanese contract manufacturer Foxconn has been hit by regional government lockdowns.
Almost eight percent less exports from China to the EU
German companies have also been complaining for some time that the lockdowns, which are often announced at very short notice, make their production and planning considerably more difficult. As in the previous month, China’s trade with Germany fell 5.7 percent in October. 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 by 7.7 percent, Chinese imports from Europe fell by 5.1 percent.
China’s foreign trade with the US in particular fell sharply by 10.4 percent. Chinese exports to the US fell 12.6 percent, while imports from the US fell 1.5 percent.
The outlook for the Chinese economy continues to cloud
The outlook for the Chinese economy continues to deteriorate due to weak export data. The zero-covid strategy with mostly lockdowns is slowing down the Chinese economy, which is also suffering from a severe real estate crisis, high debt and weak domestic demand.
The government is expected to lag far behind the original growth target of around 5.5 percent for this year. The World Bank expects only 2.8 percent. That would be only the second time in four decades that China’s growth has been so low, after the first year of the 2020 pandemic. In the third quarter, the Chinese economy grew by 3.9 percent.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
