South Korea’s exports to China tumble 25.5 per cent as world’s No 2 economy sputters under lockdown

Name: Over one-fifth of China’s total GDP under lockdown amid record Covid surge, new report finds
Uploaded: 2022-12-01T12:30:13.000Z
Duration: 2 min 13 s
Description: Over one-fifth of China’s total GDP under lockdown amid record Covid surge, new report finds

Shipments to China have fallen for six consecutive months, but November’s decline was the sharpest since mid-2009

South Korean shipments worldwide fell by 14 per cent to US$51.91 billion last month compared to November 2021

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Exports of cars from Hyundai and Kia, along with phones and memory chips from Samsung Electronics, underpin the US$1.734 trillion South Korean economy. Photo: AFP

Ralph Jennings

Published: 8:30pm, 1 Dec 2022Updated: 6:44am, 2 Dec 2022

Exports from electronics powerhouse South Korea to its key market of China fell by 25.5 per cent year on year in November as widespread lockdowns dampened consumer sentiment in the world’s No 2 economy.

Shipments to China have fallen for six consecutive months, but November’s decline was the sharpest since mid-2009, with purchases slowing of Korean tech products such as semiconductors, which are used to make electronics for domestic sale or re-export.

“Mainly the reason is that China’s domestic demand is very weak,” said Ding Shuang, head of Greater China economic research at Standard Chartered in Hong Kong. “End users have no way to go out and consume.”

Coronavirus controls in much of China this year have forced millions to stay indoors.

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Over one-fifth of China’s total GDP under lockdown amid record Covid surge, new report finds

A dip in China’s official manufacturing purchasing managers’ index to 48 in November from 49.2 a month earlier highlighted the impact of virus restrictions, as well as weak demand in domestic and external markets.

South Korea’s factory activity improved to 49 in November from 48.2 in October, but remained negative for a fifth consecutive month, with “sluggish semiconductor performance” appearing “to be driving weak output and orders”, according to Min Joo-kang, senior economist for South Korea and Japan at ING.

Frederic Neuman, chief Asia economist at HSBC in Hong Kong, said the decline in shipments from Korea to China reflects both weaker domestic Chinese demand, as well as buckling demand globally.