BEIJING—China’s trade contracted again in January and February as U.S. and European demand weakened in the face of interest rate hikes.
Exports sank 6.8 percent from a year earlier to $506.3 billion, an improvement over December’s 10.1 percent decline, customs data showed Tuesday. Imports fell 10.2 percent to $389.4 billion, deepening December’s 7.3 percent contraction.
China’s global trade surplus for the two months edged up 0.8 percent over a year earlier to $116.9 billion.
Forecasters expected trade to weaken as the likelihood of a recession in Western economies increased following rate hikes by the Federal Reserve and European Central Bank to cool economic activity and record-setting inflation….