China’s foreign trade: less with the USA and EU, more with ASEAN and Russia

The exports from the PRC to the USA in January–February have decreased by 21.8%, to the European Union – by 12.2%, and to the UK – by 14.4%. Such dynamics most probably reflects a decline in demand in these countries amid fears of recession.

In contrast, the supplies of Chinese products to ASEAN countries have increased by 9%, and to Russia – by 19.8%.

Statistics on imports: the imports of goods from the USA to China have decreased over the year by 5%, from the EU – by 5.5%, and from ASEAN countries – by 8.3%. Meanwhile, supplies from Russia have increased by 31.3%.

Overall, during last year, Chinese exports to Russia increased by 12.8%, and imports from Russia to China increased by 43.4% (largely due to energy supplies). China’s trade with the USA did not change as much last year: Chinese exports increased by 1.2%, while imports decreased by 1.1%.

The Capital Economics experts hope that lifting of coronavirus restrictions will lead to an increase in imports, while exports, on the contrary, may decline amid cooling external demand.