Cover Story: Why Is China’s Powerful Export Engine Losing Steam?

By Qu Yunxu, Yang Jinxi, Bai Yujie, Zhang Bingsong and Han Wei

According to the General Administration of Customs, China’s total trade in goods rose 10.7% to 9.42 trillion yuan in the first quarter, including a 13.4% increase in exports and a 7.5% rise in imports

Shanghai businessman Du Chuankui has been stuck at home for more than a month as the city locked down most of its 25 million people since late March to contain Covid-19. After nearly 20 years in the export industry, Du is now anxious about the future of his business.

Du runs a plant in the Jinshan District of Shanghai’s southwestern suburbs, making massage and beauty devices mainly for overseas customers. Annual sales top 400 million yuan ($60 million). The lockdowns halted production at Du’s plant. He contacted clients and sought delivery extensions, but if output can’t resume in May, some customers are likely to switch to rivals, Du said.

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