Global Export-Import Slew in January-February due to Coronavirus outbreak
Only China confirmed 3,305 death and 81,518 total cases as of now. So basically, it’s a global economic growth slowdown crisis.
COVID-19 is an infectious disease caused by a newly discovered lethal virus. This Coronavirus COVID-19 outbreak which first emerged in the city of Wuhan in December 2019, has infected more than 697,244 people in at least 203 countries and territories globally, according to the World Health Organization. WHO reported 33,257 deaths worldwide in this coronavirus pandemic.
Only China confirmed 3,305 death cases and 81,518 total cases as of now. So basically, it’s a global economic growth slowdown crisis and in this article, we’ll study China’s total exports-imports in January-February 2020 because China has become the biggest Supplier of many Global markets, so a breakdown in their production is the reactance for any country which is dependent on Chinese suppliers. China’s Export-Import in Jan-Feb 2020 “The worst is yet to come for exports and supply chains,” a statement from Larry Hu, chief China economist at Macquarie Capital as China saw a sudden fall into a trade deficit in the first two months of the year 2020.
The country is facing this due to the coronavirus outbreak, extended lunar new year holiday, inactive factory output, and blocked transport movement across the country. Imports are also repulsed but better than analyst expectations.
The drop in exports was bigger than expected -17.2% in dollar terms, while imports sank to 4%, according to a statement from Chinese customs officials.
According to Tradeimex Info Solution Pvt Ltd stats which derived from direct Customs officials, Total Export & Import Value (China) in Jan-Feb are;
For a better understanding and deeper analysis, you can subscribe to China Export & China Import Data of Jan & Feb 2020 Months as Reports are ready to deliver. Here are some examples of Reports.
Affected Sectors and Countries This pandemic is a bigger threat than the global financial crisis of 2008. According to UNCTAD estimates, the most affected sectors include precision instruments, machinery, automotive, and communication equipment. Among the most affected economies are the European Union ($15.6 billion), the United States ($5.8 billion), Japan ($5.2 billion), The Republic of Korea ($3.8 billion), Taiwan Province of China ($2.6 billion) and Viet Nam ($2.3 billion).
Also, the Tourism and Aviation industry has been badly damaged, and Information Technology will also encounter regressive growth because IT companies are heavily dependent on manpower and they are unable to operate due to restrictions in the movement of people because of the lockdown and quarantine period. Also, some of the biggest tech events were also canceled due to the effect of COVID-19, such as the Mobile World Congress, Facebook-Google Conference, CERAWeek 2020, Geneva International Auto Show & many more.
IMPACT ON THE INDIAN ECONOMY
India is also the not untouched country from the coronavirus effect. Until the Report is written the number of positive cases in India has crossed 1200, and the death toll stands at 48. it will impact the Indian industry too. Specially In imports, because as an exporter India has a smaller exposure to the global economy, the exportation of services and goods is only a 5th of the total economy. As an Importer the dependence of India on China is huge. Out of the top 20 products (at the two-digit of the HS Code) that India imports from the world, China accounts for a significant share of most of them.
India’s total Electronics importation account is 45% from China. Apart from this around 1/3rd part of the machinery and almost 2/5th part of the Organic chemicals from total purchases from the world come from China. For the Automotive industry and fertilizers, China’s share in India’s imports is more than 25%. And most attentive point is that approx. 65 to 70% of Pharmaceutical and around 90% of Mobile Phone importation is dependent upon China.
Currently, India is following a 21 days lockdown, however real impact will be felt in the 1st Quarter of FY 21. Also, it is warned that the situation will get worse if it won’t prevent till the time of April-June. The TradeImeX team is closely monitoring the Import Export trade of China with other countries. To get more updates about China's Exports & Imports during this COVID-19, subscribe to our latest China Import & Export data.
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