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China’s imports dropped four percent in terms of US dollar in the first two months of 2020, a range that convincingly overturned market expectations, and manifested that China’s strong purchasing powers have not been battered heavily in the wake of the coronavirus outbreak, one Chinese expert said. 

However, the impact of the coronavirus was much stronger on the export sector, which slumped by more than 17 percent year-on-year, as factories closed and transportation restricted to prevent the spread of the disease. 

According to data released by the Chinese customs on Saturday, China’s imports slipped by four percent on yearly basis to $299.54 billion in January and February, compared with market expectations of 16.1 percent drop.  

“China’s economy has a relatively strong resilience. Coronavirus didn’t have a large impact on China’s imports,” a Chinese government official said Saturday. 

Liu Xuezhi, a macroeconomics analyst at the Bank of Communications, also said the import data has been better than his expectation, which reflected China’s “tenacious, huge” market demands with economic development.

“China’s imports of medical appliances, its efforts to resume production and the thaw in China-US relations all contributed to the stabilization of imports,” he told the Global Times. 

Liu also added he expects domestic demands to burgeon for bulky commodities like iron ore, as the Chinese government pumps up infrastructure investment to battle the epidemic. 

Clarence Mak, President of Mars Wrigley China, told the Global Times he believes China’s market demands will usher in a new rebound as the coronavirus is brought under control. 

“We will adjust manufacturing to meet the huge market needs (from China),” he said.  

However, compared with imports, the hit was much more serious in the exporting sector. China’s exports slumped by 17.2 percent to $292.45 billion in the first two months this year, customs data showed. 

According to Liu, the coronavirus-caused production delay may accelerate the transfer of manufacturing bases from China to overseas markets for fear of supply chain disruptions. But the situation would not be as serious as some people think because China has stepped efforts to resume manufacturing and because the spread of coronavirus in overseas markets also added to the difficulties of supply shift. 

“Overall, both exports and imports will revert to normal and secure a single-digit growth this year as coronavirus fades,” Liu anticipated. 

According to the aforementioned customs official, 80.6 percent of its surveyed 2,552 trade companies have resumed work.  “Market confidence is also resuming. The impact from coronavirus on trade is just temporary,” he said. 

Global Times