China is winning the trade war and its exports have never been higher

According to officially released Thursday data, the world’s second-largest economy closed in December by 2020 with total trade of $ 78 billion. China’s overall surplus for the year totaled $ 535 billion, a 27% increase over 2019. Exports, meanwhile, reached an all-time high.

China’s economist, Larry Hu, head of Macquarie Capital, wrote, “Unexpectedly, unexpectedly, somewhat unexpectedly, the epidemic has deepened relations between China and the rest of the world.” research report.

Louis Kuiz, head of Asia economics at Oxford Economics, attributed China’s gains to the country’s management of the epidemic, which broke out a year earlier in the Chinese city of Wuhan. He said that China has taken advantage of the high demand for protective gear and electronics as people from around the world work from home.

“After recovering from its own Kovid-19 crisis, China was open for trade when the epidemic in the US (and other countries) created huge demand for Kovid-19 related goods,” Kuiz said.

China’s trade relations with the United States, meanwhile, became even more imbalanced: Beijing’s trade surplus with Washington increased to $ 317 billion in 2020, a 7% increase from the prior year and the second largest on record The amount, according to Iris Pang, for Greater China at Chief Economist ING. The amount is just shy of $ 7 billion in 2018 levels, when Trump launched a raging trade war to justify a relationship with the world’s second-largest economy.

“Given the surge of US imports from China in 2020, it is fair to say that Trump’s trade war with the country failed,” Kuiz said.

Good news of trade comes when China is expected to announce GDP figures by the end of 2020 – another positive possibility. Analysts widely expect China’s economic growth to grow even more during the last three months of the year. Chinese hope analysts polled by Reuters GDP growth of 2.1% for all of 2020.

“As [China] It is very easy, Kuij said, to play an important role in many supply chains and remains a fundamentally very competitive place for production.

China’s future is not without its challenges, however. Analysts say President-Elect Joe Biden is likely to not put some pressure on the country after he takes office next week.

“The Biden government will take a different, less combative and more stable approach to China,” Kuiz said. “But politically it is not possible that Biden will at any time remove duties on Chinese goods.”


Leave a Reply