China’s Trade Plummeted in January and February 2020

China’s trade plummeted in the first two months of 2020, which was expected due to the new coronavirus covid-19 and its potential negative impact on economic activity. The outbreak of the highly contagious disease prompted the Customs Administration to delay the publishing of foreign trade statistics and to release the figures for January and February combined.

In January-February 2020, China recorded a trade deficit worth USD 7.10bn, with exports at USD 292.45bn and imports at USD 299.54bn. In these two months, the exports decreased by 17.23% y/y from the same period a year earlier, dropping more than the expected 7.3% y/y decline. The imports slipped by 3.95% y/y, which was a result better than the market expectations of a 15% y/y decline.

China's foreign trade growth rates YoY from February 2019 to February 2020

This is the fifth time since 2000, when China records trade deficit. In previous observations, trade deficits were registered in the years 2003, 2004, 2011 and 2012.

Detailed data and analysis on China’s External Sector can be found in the CEIC China Economy in a Snapshot – Q4 2019.