China's exports and imports fell sharply in November due to the pandemic resurgence at home and weak global demand, spelling an end to the pandemic-induced boom.
November exports declined 8.7% year-on-year to $296 billion after falling 0.3% in October, the SCMP reports.
Ding Shuang, chief Greater China economist at Standard Chartered Bank, saw the downturn in Chinese exports continue relatively long as global macros weighed.
Shipments to the U.S. tumbled by 25.43% Y/Y in November, while exports to the European Union fell by 10.62% Y/Y.
Supply-side disturbances, including the departure of panicked workers fearing pandemic lockdowns in the leading Apple Inc AAPL iPhone factory, triggered the export downturn, Ding said.
"The zero-Covid policy has been loosened, but mobility has not recovered much on the national level," said Zhang Zhiwei, chief economist at Pinpoint Asset Management.
Zhiwei expects exports to stay weak in the next few months as China undergoes a bumpy reopening process.
U.S. semiconductor technology embargo on China took effect in October. However, imports of other products may recover as China gradually reopens, especially when normal air and rail travel are resumed, Ding said.
China's total trade surplus dropped to $69.84 billion in November, down from $85.15 billion in October. "Trade surplus may continue to drop in the next few months, as the performance of imports is likely to be better than that of exports," Ding said.
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