AP

China trade shrinks amid virus pressure, interest rate hikes

Dec 6, 2022, 8:51 PM | Updated: Dec 7, 2022, 8:12 pm

BEIJING (AP) — China’s imports and exports shrank in November under pressure from weakening global demand and anti-virus controls at home.

Exports sank 9% from a year ago 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 in a sign of a deepening Chinese economic slowdown.

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

Trade had been 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 shuts 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.

Consumer spending contracted in October and factory activity weakened as anti-virus controls following a rise in infections weighed on the economy.

Retail sales sank 0.5% compared with a year earlier, down from September’s 2.5% expansion, as millions of people were confined to their homes, government data showed Tuesday. Growth in factory output decelerated to 5% from the previous month’s 6.3%.

The performance was even weaker than expected by forecasters who said activity would cool as Chinese anti-virus controls and interest rate hikes by the U.S. Federal Reserve and other central banks weighed on global activity.

“November is shaping up to be even worse,” said Zichun Huang of Capital Economics in a report.

Chinese economic growth rebounded to 3.9% over a year earlier in the three months ending in September from the first half’s 2.2%, but economists say activity already was cooling. They have cut forecasts of annual growth to as low as 3%, which would be among the weakest in decades.

Exports to the United States fell 25.4% from a year earlier to $40.8 billion while imports of American goods sank 7.3% to $16.5 billion. The politically sensitive surplus with the United States narrowed by 34.1% to $24.3 billion.

Imports from Russia, mostly oil and gas, rose 28% from a year earlier to $10.5 billion. Exports to Russia gained 18.5% to $7.7 billion.

Washington, Europe and Japan are cutting purchases of Russian oil and gas to punish President Vladimir Putin’s government for its attack on Ukraine, but their sanctions don’t prevent China, India or other countries from buying its exports.

Beijing is buying more to take advantage of Russian discounts. That irks Washington and its allies by topping up the Kremlin’s cash flow. President Joe Biden has warned Xi against helping Putin evade sanctions.

Xi said in a letter to a business conference this month that China, one of the biggest buyers of Russian oil and gas, is ready to “forge closer partnership” with Moscow in energy, according to the official Xinhua News Agency. It gave no details.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Arizona will not approve new housing construction on the fast-growing edges of metro Phoenix that r...

Associated Press

Arizona Senate passes plan to manage rural groundwater, but final success is uncertain

A plan to manage rural groundwater passed the Arizona Senate amid concerns about the availability of sufficient water for future generations.

15 hours ago

A woman pauses while shopping at a Kohl's store in Clifton, N.J., Jan. 26, 2024. On Thursday, Feb. ...

Associated Press

Federal Reserve’s preferred inflation gauge picked up last month in sign of still-elevated prices

An inflation gauge favored by the Federal Reserve increased in January, the latest sign that the slowdown in U.S. consumer price increases is occurring unevenly from month to month.

1 day ago

This undated image provided by Mikel Desmond shows his brother Marcus Tessier, who turned up in Dem...

Associated Press

Missing teen with autism found in New Mexico, about 200 miles away from his Arizona home

A missing teen with autism has been found in New Mexico — about 200 miles away from his home in southern Arizona.

1 day ago

A newly released report on last year’s fatal crash involving a pickup truck and a group of bicycl...

Associated Press

Report suggests steering of vehicle that caused fatal Goodyear bicycle crash worked fine

A new report on last year’s fatal Goodyear bicycle crash has cast doubts about the driver’s claim the vehicle’s steering locked up.

2 days ago

Israeli Embassy...

Associated Press

US airman dies after setting himself ablaze outside Israeli Embassy in Israel-Hamas war protest

An active-duty member of the U.S. Air Force has died after he set himself ablaze outside the Israeli Embassy in Washington, D.C.

4 days ago

Biden and Trump to visit Mexico border Thursday immigration...

Associated Press

Biden and Trump both plan trips to the Mexico border Thursday, dueling for advantage on immigration

President Joe Biden and former President Donald Trump will make dueling trips to the U.S-Mexico border on Thursday.

4 days ago

Sponsored Articles

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

...

Day & Night Air Conditioning, Heating and Plumbing

Valley residents should be mindful of plumbing ahead of holidays

With Halloween in the rear-view and more holidays coming up, Day & Night recommends that Valley residents prepare accordingly.

China trade shrinks amid virus pressure, interest rate hikes