China's Q1 Exports Drop by Double Digits Due to COVID-19 Impact (Comprehensive)

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Amid the global spread of COVID-19, China's exports in the first quarter showed a double-digit decline.

On the 14th, the General Administration of Customs of China announced that China's exports in March amounted to $185.15 billion, down 6.6% year-on-year in dollar terms. Although this is an improvement from the 17.2% decline in exports in January and February, it still indicates a continued downward trend, meaning that the economy has not yet recovered from the impact of COVID-19.

March imports were recorded at $165.25 billion, down 0.9%. Due to the impact of COVID-19, both exports and imports decreased in March, with a trade surplus of $19.9 billion recorded for the month. For the entire first quarter (January to March), China's exports decreased by 13.3%, and imports decreased by 2.9%.

In yuan terms, China's first-quarter exports also showed a double-digit decline. Exports in March in yuan terms fell 3.5% year-on-year, with a first-quarter decline of 11.4%. First-quarter imports in yuan terms also decreased by 0.7% year-on-year. The trade surplus in yuan terms for the first quarter this year was 98.33 billion yuan, down 80.6% year-on-year. China's trade volume with the United States decreased by 18.3%, with Europe down 10.4%, and trade with Japan decreased by 8.1%.

Li Kuiyuan, spokesperson for the General Administration of Customs, stated, "With the global spread of COVID-19, the world economy is facing downward pressure. Uncertainty is increasing. China's foreign trade is also facing difficulties."

In China, amid the global trade decline caused by the COVID-19 pandemic, the outlook is that export performance in the second quarter will also show a double-digit decline following the first quarter.

This is because economic activities in the United States and the European Union (EU), which are major export markets for China, are unlikely to normalize in the second quarter due to COVID-19. UBS economist Zhang Ning estimated, "China's exports from April to June will plunge 20% year-on-year due to recessions in the US, Europe, Japan, and some emerging countries." Macquarie economist Larry Hu also forecasted that China's export growth rate in the second quarter will definitely fall further compared to the first quarter, with an annual decline rate of 13% expected.

This content was produced with the assistance of AI translation services.