Health restrictions weighed heavily on Chinese trade figures. China’s exports in October experienced their first decline since 2020. And, due to the risks of a global recession, the outlook is not good.
Chinese exports fell 0.3% in October. A sharp decline compared to September. They had then increased by 5.7%. The threat of recession in the United States and Europe, combined with soaring energy prices, is indeed weakening global demand for Chinese products.
Bad figures also on the import side. China is pursuing a very strict policy against Covid-19, with massive confinements, screenings and mandatory quarantines. At the end of October, some 207 million Chinese continued to undergo containment measures to varying degrees. These measures generate a lot of uncertainty and constitute a brake on activity and consumption. This deterioration in health conditions is reflected in a sharp decline in purchases of foreign products. Chinese imports thus fell by 0.7%.
According to experts, this downward trend should become more pronounced in the coming quarters. The “zero Covid” policy should indeed continue at least until March 2023, which could further weigh on economic growth, employment and investment in China.
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