China November trade sinks under virus pressure, rate hikes

China’s imports and exports shrank in November as global demand weakened and anti-virus controls weighed on the second-largest economy

China Trade (Chinatopix)

China’s imports and exports shrank in November as global demand weakened and anti-virus controls weighed on the second-largest economy.

Exports sank 9% from a year earlier to $296.1 billion, worsening from October’s 0.9% decline, customs data showed Wednesday. Imports fell 10.9% to $226.2 billion, down from the previous month’s 0.7% retreat.

The country’s global trade surplus narrowed by 2.5% from a year earlier to $69.9 billion.

Chinese trade was 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 has repeatedly shut 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.