China’s November imports, exports plunge

BEIJING

China’s imports and exports plunged in November to levels not seen since early 2020, as strict COVID restrictions hit the economy hard, according to official figures released yesterday.

Beijing’s strict zero-COVID policy of snap lockdowns, travel curbs and daily mass testing has left businesses reeling, disrupted supply chains and dampened consumption.

November imports fell 10.6 percent year-on-year, the biggest collapse since May 2020.

Exports fell by 8.7 percent year-on-year, the biggest drop since February 2020, when the country was mired in the early stages of the pandemic.

The threat of recession in the United States and Europe, coupled with soaring energy prices, is weakening demand for Chinese products.

China’s factory activity shrank for a second straight month in November, official data last week showed, as large swathes of the country were hit by lockdowns and transport disruptions.

The Purchasing Managers’ Index, a key gauge of manufacturing in the world’s second-biggest economy, came in at 48.0, down from October’s 49.2 and well below the 50-point mark separating growth from contraction, according to the National Bureau of Statistics.

Chinese leaders have set an annual economic growth target of about 5.5 percent, but many observers think the country will struggle to hit it, despite announcing a better-than-expected 3.9 percent expansion in the third quarter.