China’s product exports fall 7.7% in May

China’s exports of products fell 7.7% year-on-year in May to $ 206.81 billion, the China Customs Administration reported.

In turn, Chinese merchandise imports totaled $ 143.89 billion, a decrease of 16.7%, at the annual rate.

As a result, China’s total merchandise trade was $ 350.7 billion, a decline of 9.3%, year-over-year.

Measured in terms of yuan, China’s exports grew at an annual rate of 1.4%, which led the trade balance to register a surplus of 442.7 billion yuan.

Exports to the world

In China, the country where the pandemic originated, economic activity was already severely affected in the first quarter as a result of strict containment measures by Covid-19.

The real Gross Domestic Product (GDP) collapsed 6.8% in the year. According to official statistics, this was the first contraction in GDP since the introduction of quarterly estimates in 1992.

Almost all sectors were affected in the first quarter. The losses were particularly severe in hotel and restaurant services, as well as in wholesale and retail trade.

Meanwhile, industrial production decreased by almost 9%, mainly because the Chinese New Year plant shutdowns, which were originally scheduled to end in late January, were extended by at least a week by authorities in large areas of the country.

Furthermore, labor shortages and lack of supplies made it difficult to further increase production.

Large-scale production losses and logistical problems also caused a sharp decline in merchandise exports, thus disrupting cross-border supply chains in some parts.

Globally, China leads product exports and is the second largest importer of goods.