China’s Export Growth Slows Sharply as Zero-COVID Policy Hit Economy

China’s zero-covid policies are beginning to severely hit the country’s global export engine. Prolonged lockdowns led to particularly sluggish export growth in April, new figures show.

Export growth of nearly 4% may sound impressive, but it’s not enough for China

China’s export growth fell sharply to 3.9% in April, its weakest level since June 2020, as the effect of Beijing’s stringent COVID-19 rules took its toll on trade in the country.

Exports, measured in US dollars, fell from a 14.7% growth rate in March although the April figure did come in slightly above analysts’ forecasts of 3.2%.

Imports were stagnant for April, showing almost no growth amid restricted domestic demand.

The sluggish figures reflect the extent to which the Chinese economy has lost momentum in the face of prolonged lockdowns in some of its major economic hubs.

Shanghai, the world’s largest port, has seen massive disruption since late March as a result of curbs aiming at dealing with the country’s worst outbreak of COVID-19 since the pandemic began more than two years ago.

The Chinese government’s zero-COVID policies have seen factories shut across the city, as well as major shipping delays at the port.

Transport and logistics networks have been severely impacted, with restrictions hitting delivery of goods around the country and to ports with major global shipping connections.