China’s exports and imports contracted at a sharper pace in November

The General Administration of Customs said on Wednesday, December 7, that dollar exports fell 8.7% in November compared to the previous year to $296 billion, which is the lowest level since April, when Corona restrictions led to the closure of Shanghai factories and roads and prevented companies from placing goods on ships.

The decline was the largest since February 2020 when trade was affected by the first closure of Corona, and it comes in a month when exports usually rise strongly before the Christmas season and holidays abroad, and the data also showed that the decline in imports also increased to 10.6%, bringing the trade surplus to 69.8 billion dollars. Last month, compared to $85.15 billion in October.

The deterioration of trade performance has undermined a strong pillar of the Chinese economy over the past two years, as rising exports to record levels provided Chinese companies with stable demand, even as domestic spending suffered due to the housing sector collapse from last year, which was followed by an increase in the outbreak. Coronavirus then shut down this year.

The government is now looking to ease the “zero-Covid” policy to reduce its impact on the economy. Still, policymakers may need to add more stimulus, as the Politburo, the ruling Communist Party’s highest decision-making body, said it will seek an economic transition next year through Pledge to keep fiscal policy active and monetary tools targeted and “robust”, according to its last meeting on Wednesday.