China’s exports rise to highest in two decades
China’s export growth progressed to the peak in over two decades, according to the official data showed on Sunday. The imports growth in the country is also recovering rapidly from the coronavirus pandemic that had brought activity to a full stop.
Electronics and textile exports like masks contributed to the rise in outbound shipments, as demand for work-from-home supplies and protective equipment against the virus pandemic has increased tremendously during the pandemic.
According to official data showed on Sunday, exports have raised to 60.6 percent on-year in the January-February period, which was above analysts’ expectations, on the other hand, imports rose 22.2 percent.
The latest figures contrast sharply to last year’s reduction of around 17 percent in exports and 4 percent drop in imports.
The country fought to control the spread of Covid-19 early on, as the customers were staying home, and businesses were facing a slow return to operations.
As per official data on Sunday, the electronics exports rose 54.1 percent, whereas textiles including masks increased 50.2 percent.
China’s overall trade surplus came in at $103.3 billion, according to the customs administration.
In the meantime, the country’s trade extras with the US which was the main point of dispute during the trade war followed by former president Donald Trump also got doubled from the same period last year to $51.3 billion.
According to customs authority statement on Sunday, China’s foreign trade data remained strong despite the “off-season”.
Another reason for the rise in trade was the recovery in production and consumption in major economies like Europe and the United States in the coronavirus pandemic, as well as developments in domestic consumption.
While business activity slows down during the Lunar New Year period as workers return to their hometowns, official requests to avoid travelling this year to retain the Covid-19 outbreak in check supported production, the customs administration said.
“Global electronics demand has increased drastically due to the global shift to remote working and online shopping,” stated Rajiv Biswas, Asia-Pacific chief economist for IHS Markit.
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In the meantime, the strong import progress also reflected a “normalisation of consumer spending” in China, after a severe collapse due to lockdowns.