China trade slumps as anti-virus controls close factories

China’s exports fell by double digits in January and February as anti-virus controls closed factories, while imports sank by a smaller margin.

Exports tumbled 17.2% from a year earlier to $292.4 billion, a sharp reverse from December’s 7.8% rise, customs data showed Saturday. Imports declined 4% to $299.5 billion, down from previous month’s 16.3% gain.

Tre was poised for a boost after Beijing and Washington removed punitive tariffs on some of each or’s goods in a tre truce. But those gains were offset by Chinese anti-virus controls that shut down much of world’s second-largest ecomy starting in late January.

Exports to United States plunged 27.7% in January and February to $43 billion, worsening from December’s 12.5% decline. Imports of American goods crept up 2.5% to $17.6 billion, but China still recorded a $25.4 billion tre surplus with United States.

China’s global tre balance fell to a $7.1 billion deficit.

customs ncy began reporting January and February tre figures toger this year to screen out impact of Lunar New Year holiday, which comes at different times each year during that two-month period.

Factories usually shut down for two weeks or more during holiday while ir employees visit ir hometowns.

Imports usually surge after holiday as factories restock. This year’s rebound was postponed after holiday was extended by at least one week, more in some places, to keep factories and offices closed as authorities tried to contain spre of coronavirus.

That sent shockwaves through Asian ecomies that supply components and raw materials to Chinese factories that assemble world’s smartphones, toys, home appliances and or consumer goods.

Shopping malls, restaurants and or retail businesses also were closed, depressing demand for consumer goods. Demand for online grocery sellers soared but or demand for or goods slumped.