MNI BRIEF: China's Exports Drop For Second Month In November

China's exports fell for a second straight month in November, dropping 8.7% y/y and accelerating from October's 0.3% y/y decline due to Covid lockdowns, according to China Customs data released on Wednesday.

November's decline was the biggest monthly drop since February 2020, but the print beat market expectations for a 4.2% y/y drop.

Imports fell 10.6% y/y in November, sharply down from October's 0.7% y/y drop, and registering the lowest reading in 30 months. Partly reflecting a high base effect, a weaker yuan during the month also pushed up the cost of imported products. The Chinese yuan depreciated as much as 3.1% against the dollar over the past two months.

Exports in the first eleven months totalled USD3.29 trillion, while imports amounted to USD2.49 trillion. The trade surplus over the Jan-Nov period was USD802.04 billion, with November contributing USD69.84 billion. (See MNI INTERVIEW: US-China Trade War To Get "Much Worse" - Pettis)

The European Union replaced the United States to be the biggest buyer in November, with imports from China up 11.5% y/y in the Jan-Nov period. The United States purchases rose 3.4% y/y. Imports from the US edged down 0.5% in the first eleven months, and those from the EU fell 7.3%.