China' foreign trade contracted less than expected in the first quarter (1Q) of 2020 affected by COVID-19, said the general administration of custom today (04/14) - Photo: Special

JAKARTA (TheInsiderStories) – China’ foreign trade contracted less than expected in the first quarter (1Q) of 2020 affected by COVID-19, said the general administration of custom (GAC) today (04/14). The world second largest economy’ foreign trade volume reached RMB6.57 trillion (US$933.24 million), declining by 6.4 percent compared to same period in 2019.

Based on the official data, China’ exports dropped by 11.4 percent to RMB3.33 trillion and imports edged down 0.7 percent to RMB3.24 trillion, making the trade surplus RMB98.33 billion, dropped 80.6 percent from last year.

It said, foreign trade of goods fell by 0.8 percent in annual basis to RMB2.45 trillion. While, exports dropped by 3.5 percent to RMB1.29 trillion and imports rose by 2.4 percent to RMB1.16 trillion.

Looking the latest data, customs spokesman, Li Kuiwen as quoted by Reuters, warned the threat of a global recession would hurt its exports going forward as the Chinese government considers stimulus measures to boost domestic spending in an effort to insulate its economy from a global recession.

Even China’ trade showed some signs of recovery in March as domestic demand returns to normal, but difficulties facing foreign trade cannot be underestimated, he adds. Asked about the implementation of the phase 1 trade deal with the United States, customs spokesman Li told a news conference that imports of agricultural producers were increasing.

Last March, Chinese President Xi Jinping’ administration has rolled out a package of fiscal policies to aid the civil aviation industry in tiding over difficulties amid the coronavirus disease. The preferential policies including tax relief and subsidies will be adopted to reduce business risks faced by the country’ aviation enterprises.

The regulator also waived airlines’ payment to the government starting Jan. 1 and encouraged aviation firms to keep their international flights running.

Earlier in February, the People’s Bank of China (PBoC) injected more funds to financial market worth of RMB300 billion. The policymaker said conducts a medium-term lending facility (MLF) operations in the amount of RMB200 billion and 7-day reverse repo operations in the amount of RMB100 billion on Feb. 17.

The MLF have a maturity one year with interest rate 3.15 percent. While, the reverse repo operations have interest rate 2.40 percent. In 2019, the PBoC added RMB280 billion into the financial system with 7- and 14-day reverse repurchase agreements and keeping the interest rates unchanged.

That came after the authorities restarted such operations after a 20-day hiatus on Wednesday. The overnight repo rate, an indicator of interbank liquidity, plunged the most in a month amid the injection while the benchmark seven-day rate saw its biggest decline since Dec. 2.

US$1: RMB7.04

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