China's March Imports Decline Amid COVID Spread... First Since 2020 Wuhan Incident

by Kim Bokyung

Published 13 Apr.2022 16:17(KST)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] China's monthly imports declined for the first time since the 2020 Wuhan outbreak due to demand contraction caused by the spread of COVID-19 within China. Amid rising global trade uncertainties, the export growth rate also continued to slow down.

According to the General Administration of Customs of China on the 13th, exports in March amounted to $276.1 billion, up 14.7% compared to the same month last year. The March export growth rate was lower than the 16.3% recorded in the previous period (January-February).

Currently, the COVID-19 situation in China appears to have had a greater immediate impact on imports, which reflect domestic demand, than on exports. China's imports in March were $228.7 billion, down 0.1% from the same month last year. This marks the first monthly decline in China's imports since August 2020, when the effects of the Wuhan outbreak were still ongoing. The March import growth rate sharply fell from 15.5% in the previous period (January-February).

The Shanghai and Shenzhen ports, which were most severely affected by the COVID-19 impact after March, account for 17% and 10% of China's total export-import container throughput, respectively.

Wang Jun, an economist at Zhongyuan Bank, said, "The import growth rate has fallen significantly, reflecting a contraction in domestic demand," adding, "Due to COVID-19 prevention measures in the Yangtze River Delta area, including Shanghai, April data is expected to be worse, and the real pressure will appear from the second quarter."

China enjoyed export growth over the past two years thanks to the 'COVID-19 special.' Last year, exports surged nearly 30%, recording a record-high trade surplus of around 800 trillion won.

However, as major countries around the world gradually recover from the COVID-19 shock and normalize their economies this year, China's export growth rate is expected to slow down.

The Ukraine war has shocked global trade, and the lockdowns in Shanghai and Shenzhen, China's major trade hubs, have also affected port operation rates, which is expected to impact trade indicators.