As the virus spreads, China’s exports in April were the lowest in two years, according to customs data.
Beijing, China export growth slowed to its lowest level in almost two years in April, according to customs data released Monday. This was because the return of COVID shut down factories, slowed down transportation, and caused traffic jams at key ports.
The data shows how bad the damage is getting as the world’s second-largest economy keeps millions of people at home, especially in Shanghai, a key business hub, to stop the worst COVID resurgence since the beginning of the pandemic.
Beijing has stuck to a strict zero-COVID policy that includes lockdowns and mass testing, but the cost to the economy is rising as manufacturing hubs and supply chains weaken because of the strict rules.
The Customs Administration said Monday that the growth of exports slowed to 3.9% year over year last month.
A Bloomberg poll found that analysts expected growth of 2.7%, so this was better than that. However, it was the lowest rate since June 2020.
Import growth was flat in April, compared to a 0.1 percent drop in March.This is because Chinese consumers are still hesitant to buy things because of all the restrictions in their country.
On Monday, Li Kuiwen, a spokesman for Customs, tried to sound positive by saying that the economy still has time to turn around and that its “positive fundamentals” haven’t changed.
In April, China’s biggest city, Shanghai, was almost completely shut down because it was the center of the country’s worst coronavirus resurgence. Many factories stopped making things, and a lack of truckers caused goods to pile up at their port.
There are also more and more rules in other cities, including Beijing, which is the capital.
Top leaders have said reassuring things about tech, infrastructure, and jobs, but analysts have warned that the zero-COVID strategy is still the biggest threat to growth and stability.
