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China trade: coronavirus outbreak threatens temporary ‘shock’ after May figures fell short of expectations
- Guangdong province accounts for a significant portion of China’s total exports, but analysts say recent outbreaks may slow turnover through this month
- Rise in imports in May reflected an increase not in volume, but in value, which could have been inflated due to much higher commodity prices last month
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A coronavirus outbreak in southern China looks to have a “transitory shock” on trade this month after exports fell short of expectations in May despite hitting a 10-year high.
Concerns have been raised about how the recent outbreak will affect traffic at Shenzhen’s Yantian port and Nansha port in Guangzhou, which are among the world’s busiest container ports.
Officials at Nansha port insisted on Monday that operations were “running normally”, though truck drivers were being required to have booked in advance, to undergo a temperature check, and to present a green health code upon arrival – showing that they were allowed to travel freely.
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“Exports surprised a bit on the downside, maybe due to coronavirus cases in Guangdong province slowing down the turnover at the Shenzhen and Guangzhou ports,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management. “But I expect this shock to be transitory.”
He noted that Guangdong province accounts for around 24 per cent of China’s total exports. Over the weekend, the government stepped up its policies to curb the coronavirus risk in Guangdong.
02:11
Guangzhou tightens Covid-19 controls as mass tests expose more cases in Chinese city
Guangzhou tightens Covid-19 controls as mass tests expose more cases in Chinese city
China’s exports grew by 27.9 per cent last month from a year earlier to US$263.9 billion, down from the 32.3 per cent growth seen in April. The May figure was also below the result of the Bloomberg survey, which had predicted 32 per cent growth.
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