This is the result of China’s Zero-Covid Policy — Economic pain

China’s trade shrinks — Pain for Chinese Economy

China’s exports and imports fell in October for the first time since May 2020. This was caused by a perfect storm of COVID-19 restrictions at home and fears of a global recession. This makes the outlook for a struggling economy much less bright.

The bad news is that China’s leaders are having a hard time keeping COVID outbreaks from happening while also dealing with rising prices, rising interest rates, and a global slump.

On Monday, official statistics revealed that outbound exports fell 0.3% from a year earlier, reversing September’s 5.7% growth and falling below analysts’ estimates for a 4.3% rise. Worst performance since May 2020.

The report implies demand is weak, and analysts predict more gloom for exporters in the coming quarters, putting extra pressure on the country’s industrial sector and the world’s second-largest economy, which is struggling with COVID-19 curbs and property slump.

Chinese exporters weren’t even able to capitalise on a prolonged yuan currency depreciation since April and the important year-end shopping season, highlighting global consumer and corporate concerns.