China trade shrinks amid virus pressure, interest rate hikes
China’s imports and exports shrank in November under pressure from weakening global demand and anti-virus controls at home.
Exports sank 9% from a year ago to $296.1 billion, worsening from October’s 0.9% decline, customs data showed yesterday. Imports fell 10.9% to $226.2 billion, down from the previous month’s 0.7% retreat in a sign of a deepening Chinese economic slowdown.
The country’s global trade surplus narrowed by 2.5% from a year earlier to $69.9 billion.
Trade had been forecast to weaken as global demand cooled following interest rate hikes by the Federal Reserve and central banks in Europe and Asia to rein in surging inflation.
Chinese consumer demand has been hurt by a “zero-COVID” strategy that shuts down large sections of cities to contain virus outbreaks. That has disrupted business and confined millions of people to their homes for weeks at a time.
Consumer spending contracted in October and factory activity weakened as anti-virus controls following a rise in infections weighed on the economy.
The performance was even weaker than expected by forecasters who said activity would cool as Chinese anti-virus controls and interest rate hikes by the U.S. Federal Reserve and other central banks weighed on global activity.
