07 December 2022 07:41
Chinese trade weakened by cooling demand due to rate hikes. The effect of the lockdowns on domestic consumption: -10.6% per year, against the expected -6%.
Exports tumbled to $296.1 billion, down from a 0.9% drop in October. Imports fell to $226.2 billion, down from a 0.7 percent decline the previous month. The country’s global trade surplus shrank by 2.5% compared to the previous year.
The effects of “zero-Covid” policies – A contraction in Chinese trade was expected, with global demand cooling following interest rate hikes by the Federal Reserve and central banks in Europe and Asia to curb rising inflation. Chinese consumer demand has been hurt by the “zero-Covid” strategy that has repeatedly shut down large sections of cities to contain virus outbreaks.
The easing of measures against Covid – A policy that Beijing, even after the recent protests, has now decided to loosen with an abrupt u-turn. People who test positive for the virus will be able to self-isolate at home and schools where there have been no outbreaks will return to classroom teaching. We will also limit blocks to buildings, districts and neighborhoods. According to the new guidelines presented by the National Health Commission (NHC), “asymptomatic infected people and mild cases are now generally isolated at home” and the country “will reduce the frequency of tests”.
