Lockdowns hinder Chinese trade and cause imports to plummet

Chinese imports plummeted, while the growth pace of exports also took a slow turn due to the lockdowns imposed by the government to fight the spread of covid-19, which interrupted port operations and restricted commercial activity and expenditures in the country.

See below the track record of Brazilian container exports to China and, then, month-to-month container imports from the Asian country in the period from January 2020 to February 2022. The data are from DataLiner.

Container Exports to China | Jan. 2020 – Feb. 2022 | TEU

Container Imports to China | Jan. 2020 – Feb. 2022 | TEU

Source: DataLiner (click here to request a demo)

In terms of dollars, imports fell 0.1% compared to the same month last year. It was the first drop recorded since August 2020 and was well below analysts’ initial expectation of an 8.4% increase. Exports grew 14.7%, according to data released on the 13th. The number was higher than expected but lower than the 16.3% increase in the year’s first two months. The trade surplus was US$ 47.4 billion in the month.

The data shows the effect that lockdowns have on trade. For example, congestion at ports and logistical bottlenecks worsened in March, affecting maritime traffic. In addition, several companies, such as Apple, Foxconn Technology Group and automakers such as Tesla, suspended production during the month.

“Imports were hit the hardest by disruptions in production and logistics caused by the lockdowns,” Ken Cheung, Mizuho Bank’s Asian currency strategist, said to investors. “The surge in commodity prices from the war in Ukraine could start to dampen demand for imports as well.”

Imports of vegetable oils, meat, iron ore and auto parts saw the largest drops in the first quarter compared to last year. Imports of medicines, textiles and cosmetics also fell in the first three months of the year, while purchases of crude and refined oil, coal and natural gas rose.

The foreign trade environment is becoming increasingly difficult and complex, commented Li Kuiwen, a spokesman for the customs administration. He assessed that greater efforts would be needed to achieve the trade stabilization.

Source: Valor Econômico

To read the full original article, please go to:

https://valor.globo.com/mundo/noticia/2022/04/14/lockdowns-prejudicam-o-comercio-da-china-e-importacoes-caem.ghtml

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