China’s exports plummeted in the first two months of the year as the coronavirus outbreak disrupted global supply chains, damped business activity and blocked transport across the world’s second-largest economy.
China’s overall exports contracted by 17.2 per cent in dollar terms in January and February, more than was expected by economists polled by Bloomberg. Imports fell by 4 per cent. China posted a trade deficit of $7.1bn in the first two months of the year.
The slowing of imports raises doubts that China will be able to meet its target in its trade deal with the US. China has agreed to buy $200bn more US goods than it did in 2017, the baseline before the start of the trade war, over the course of two years. But imports from the US rose just 4.3 per cent year on year in January and February. Exports to the US fell 26.5 per cent.