The export boom that underpinned China’s economy for most of the time during the COVID-19 pandemic has lost momentum. As the global economy struggles, the Chinese government urgently needs to find growth drivers elsewhere.
According to data released by the General Administration of Customs of China, China’s exports in December 2022 fell by 9.9% year-on-year, an increase from the 8.7% decline in November. While exports fell in December by less than the 10.5% drop forecast by economists polled by The Wall Street Journal, it was the biggest drop since February 2020. In February 2020, a nationwide lockdown brought economic activity to a standstill.
The decline in imports in December last year narrowed, down 7.5% year-on-year, compared with expectations for a 9% drop.
For the whole of 2022, China’s exports will increase by 7% year-on-year to US$3.6 trillion, while imports will increase by 1.1% to US$2.7 trillion.
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