China’s trade contracts as Western demand weakens

By JOE McDONALD
AP Business Writer

BEIJING (AP) — China’s trade contracted again in January and February as U.S. and European demand weakened in the face of interest rate hikes, adding to pressure on official efforts to revive economic growth following the end of anti-virus controls. Customs data show exports sank 6.8% from a year earlier. Imports fell 10.2%, deepening December’s 7.3% contraction. Forecasters expected trade to weaken as the likelihood of a recession in Western economies increased following rate hikes to cool economic activity and inflation. That adds to complications for President Xi Jinping’s government, which is trying to revive economic growth that sank last year to 3%, the second-weakest rate since the 1970s.