China reopening-delay

China reopening-delay

China's reopening still has limited impact on S. Korea's economy: report

SEOUL, April 17 (Yonhap) -- China's reopening is delivering a weaker-than-expected impact on South Korea's economy with exports of IT goods still remaining sluggish, a report showed Monday.

The report compiled by the Bank of Korea (BOK) said China's reopening of its economy in the wake of the coronavirus pandemic is delaying a much-coveted impact on Asia's fourth-largest economy.

China's economy has been recovering since the reopening late last year on the back of a rebound in private spending and investment.

Its exports turned positive in March, but its imports remained in negative terrain, the report said.

The BOK report said China's reopening has been positively affecting its consumption, but demand for mobile phones, autos and other durable goods continued to decline, which in turn does not help South Korea's exports to the neighboring country gain traction.

Also, the report said inventory levels in the Chinese manufacturing sector still run high, also delaying the spillover of its reopening to other countries.

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