Chinese trade weakened due to lower demand due to higher interest rates. Lockdown impact on domestic consumption: -10.6% yoy vs -6% expected.
Exports tumbled to $296.1 billion, down 0.9 percent in October. Imports fell to $226.2 billion, down from 0.7 percent in the previous month. The country’s global trade surplus shrank by 2.5% compared to the previous year.
Effects of “Zero Covid” Policies – A contraction in Chinese trade was expected, as global demand slumped after interest rate hikes by the Federal Reserve and central banks in Europe and Asia to curb rising inflation. Chinese consumer demand has been hurt by the “zero Covid” strategy that has repeatedly locked down large sections of cities to contain the virus outbreak.
easing measures against covid – A policy that Beijing decided, even after recent protests, to mitigate with a sudden shift. People who test positive for the virus will be able to self-isolate at home and schools where there has been no outbreak of the virus will return to classroom teaching. We will also limit ourselves to buildings, neighborhoods and neighborhoods. According to new guidance provided by the National Health Commission (NHC), “infected people and mild cases are now generally isolated at home” and the country will reduce the frequency of testing.
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