China’s exports drop in May as coronavirus pandemic hits overseas demand
- China’s exports fell by 3.3 per cent in May, down from a surprise return to growth in April but a smaller drop than analysts expected
- Imports plunged 16.7 per cent in May, deteriorating from April, a sign that demand remains weak in the world’s second largest economy
China’s exports declined in May, as demand dried up in major overseas markets hit by the coronavirus pandemic, with experts predicting that shipments would continue to decline in coming months until the virus is brought under control and the global economy gets back on its feet.
The better-than-expected figure was due largely to continued strong exports of medical equipment and supplies used in fighting the coronavirus.
Exports of medical equipment and instruments rose 89 per cent in May from a year earlier, shipments of textiles, yarns and fabrics (including masks) rose 77 per cent, while exports of plastics (including medical protection equipment) increased 54 per cent, noted Shen Jianguang, chief economist of JD Digits, the fintech arm of e-commerce firm JD.com.
The outlook for Chinese exports in June and the second half of the year will depend on the development of the pandemic and the speed of the global economic recovery, Shen said. The demand recovery will lag that of supply, so Chinese exports will face greater pressure in coming months.