Chinese customs proclaimed a 17.2% export drop in January and February compared to 2019
Due to the novel Coronavirus epidemic, China’s economy has been paralyzed and exports drop dramatically. The Asian powerhouse has suffered the biggest decrease in export since February 2019 when it was in the middle of the US-China trade war and economists predicted an average 16% decrease after consulting with the Bloomberg agency.
To limit the spread of the epidemic China quarantined many parts of the country. But the return to work was fragmented extremely ever since as most factories struggling to start production till now.
For quarantining and restricting traffic drastically the going back to the work was complicated which affected the supply chains. Merchandise transportation was also disrupted extremely.
As per the Chinese customs, the import was also dropped by 4% as most of the factories were almost in stalemate and many workers were stuck at home.
The country’s external trade with the United States has decreased by 40% for January and February due to the fall in Chinese import, Chinese customs added further.
In the first two months of the year, the Chinese external trade surplus with the United States fell to 22.5 billion euros which were 42 billion euros in 2019. This trade surplus was the heart of the US-China Trade war.