China’s exports continued to boom in December, pushing the trade surplus to record highs in the month and already becoming the world’s best-performing major economy.
The increase in shipments is an incomparable global appetite for fuel work domestic technology and healthcare equipment as the Kovid-19 continues in many locations worldwide. Demand is strong enough to contribute to Bottlenecks at ports as manufacturers complain of lack of shipping containers and rising costs.
Control over virus cases last year allowed Chinese factories to cash in on global demand, while its business rivals were fond of it. It is expected that the pace of exports will also continue as vaccines have been introduced to allow the virus to spread and industrial production to recover in the US and Europe.
The bumper year also underscores China’s role as the perfection of global supply chains, even political tensions with the US and other trade rivals.
“The biggest takeaway is that China’s exports remain surprisingly resilient despite the return of the second wave in major economies,” said Michelle Lam, economist at Greater China at Societe Generale SA in Hong Kong.
Business data showed increasing demand across the board:
- Exports rose 18.1% in dollar terms from December a year earlier – a softer 21.1% expansion compared to the November bumper – while imports rose 6.5%, both beating economists’ expectations
- The trade surplus of $ 78.2 billion for the month exceeded the median estimate of $ 72 billion in the Bloomberg Survey of Economists. For the full year, the trade surplus reached $ 535 billion, a 27% increase from 2019 and the highest since 2015
- Exports to the US increased 34.5% from December a year earlier, while US goods imports rose 47.7%, the highest since January 2013. Click here for a breakdown of China’s exports by country, and Here for import
- For the full year, the trade surplus with the US was $ 317 billion, up 7% in 2019.
- On face masks alone, factories exported almost equal According to the customs agency, 40 masks for each person in the world outside China
“Demand for China’s goods may remain strong over the next few months as the Kovid transition to the US and Europe increases,” said Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered PLC in Hong Kong.
He said the improved performance would inevitably be futile as the virus is controlled in large markets including the US and Europe and industrial production recovers.
What does Bloomberg’s economics say …
The data showed that external demand is boosting China’s economic recovery, and will likely continue in the coming months. Exports should jump in the first quarter, partly due to strong US demand from the expected economic stimulus package.
– David Qu, Economist of China
For the full report, See here
An official of China’s General Administration of Customs, Li Qiuwen, said trade surpluses could keep Growing this year, supported the expected recovery in the global economy and steady domestic growth.
Chinese economist Jian Chang, head of Barclays PLC in Hong Kong, said the data supports regional evidence of increased demand from South Korea and Vietnam.
“The external recovery continues,” Chang said. “Chinese manufacturers have flexibly adjusted their production lines to produce goods to meet demand through the new Kovid era.” He said that both epidemic and non-epidemiological items are growing strongly.
Read more: China made 40 face masks for every person around the world
The data probably won’t move the central bank gradually from its stance of withdrawing monetary stimulus, but without any sharp turn in policy, Chang said, interest rate cuts or increases are unlikely this year.
There was also a change in the figures of China’s trading partners last year, with the 10-member number of Southeast Asian countries reaching number 1, followed by the European Union and the US.
– Assisted by James Megger, Lin Zhu, Enda Karran, Lucille Liu, and Oiling Tan