China’s export growth has fallen to its lowest level in two years as the second-largest economy increasingly suffers from tight corona restrictions. In April, exports calculated in US dollars increased by only 3.9 percent compared to the same month last year, as reported by Chinese customs on Monday in Beijing. It is the slowest growth since June 2020. Imports stagnated.
The background is the restrictions for many companies due to the strict Chinese zero-Covid policy in China, which also severely affects freight traffic. According to experts, the crisis surrounding the Russian war of aggression in Ukraine and the recovery of capacities in other countries are also having a global impact.
Trade with Germany has collapsed noticeably. Chinese imports of German goods fell 9.8 percent. But China’s exports to Germany also dropped unusually sharply by 9 percent. With the European Union, there was still an export increase of 7.9 percent. But imports also fell 12.5 percent, customs reported.
China’s foreign trade faces a “complicated and difficult external environment,” said customs statistics director Li Kuiwen. In March, exports had increased noticeably by 14.7 percent compared to the same period last year, while imports had already fallen by 0.1 percent.
However, many problems are self-made. The expansion of the Covid measures in China are slowing down the production and delivery of goods. The economic and financial center of Shanghai, which has a population of 26 million, has been in lockdown for more than a month. Cargo traffic through the world’s largest port has plummeted. Because of the strict regulations, there is already a shortage of trucks.
After a few hundred corona cases, there are also increasing home office requirements and other restrictions in the capital Beijing. A third round of mass testing is currently underway for three consecutive days for the 21 million inhabitants. Corona restrictions have also been in force in northeast China and other major cities for weeks, affecting tens of millions of people and many companies.
After around two years of effective pandemic control in China, the spread of the highly contagious omicron variant is putting the Chinese zero-tolerance policy to a severe test. Despite the high economic costs, the Chinese leadership wants to stick to its course, as the Standing Committee of the Politburo had just reaffirmed.
The slowdown in exports is having a major impact, as foreign trade accounts for around a third of China’s economic output and employs around 180 million people. Chinese Prime Minister Li Keqiang spoke on Saturday of a “complicated and serious” employment situation. He called on all local authorities to give priority to helping companies overcome the current problems and secure jobs.
“Stabilizing employment is important for people’s well-being,” Li Keqiang said. “It is also an important prop for the economy to operate reasonably.” The government has promised more stimulus measures to meet the official target of To achieve 5.5 percent growth this year. (dpa)