MercoPress. South Atlantic News Agency

China's lockdown policy and global slower demand reflect strongly in foreign trade

Exports to the United States fell 25% year on year in November, the fourth consecutive month of declines. European Union sales fell by 11%.

Chinese exports fell at the steepest pace in more than two years in November, the latest indication of how COVID-19 restrictions and slumping global demand are stifling the economy.

Shipments from China fell 8.7% year-on-year in November, the biggest drop since February 2020, when a nationwide lockdown brought economic activity to a standstill. Economists had forecast a decline of just 2%.

Exports to the United States fell 25% year on year in November, the fourth consecutive month of declines. European Union sales fell by 11%. Shipments of nearly all goods, including furniture, toys, and electronics, have decreased as Western consumers cut back purchases in the face of rising inflation.

Domestic consumption has remained feeble during the pandemic, mainly due to Beijing’s radical measures to contain the spread of Covid-19 and the lack of direct financial relief for households. In addition, the collapse of its massive real estate market has constrained China’s demand for iron ore and other raw materials from abroad.

According to official data, the result is a reversal of China’s growing trade surplus, which fell from US$ 85 billion in October to nearly US$ 70 billion in November.