JAKARTA (TheInsiderStories) - China’ exports surged 155 percent to US$468.9 billion and imports jumped 22.2 percent to US$365.6 billion in February compared with a year earlier when much of the economy shut down to fight the pandemic, custom agency announced yesterday. While, in January - February total exports of China surged 60.6 percent over a year earlier, after factories reopened and global demand started to recover from the COVID-19 pandemic, contributed by electronics and textile exports.
Until February, the world second largest economy also posted a trade balance surplus of $103.3 billion in the same month, compared with a $7.1 billion deficit in the same period of last year. It said, exports to the United States (US) soared 87.3 percent over last year to $80.5 billion despite higher tariffs. Imports of American goods rose 66.4 percent to $29.3 billion.
China’ trade surplus with the US narrowed by 17.7 percent from the same time last year to $20.9 billion. Then, exports to the 27-nation European Union rose 62.6 percent to $73.7 billion and imports gained 32.5 percent to $45.9 billion.
In the latest report, CITIC Securities, said the unexpected export boom was mainly driven by China’ position as the first country in and out of the pandemic, with industrial production rebounding quickly, combined with the country’ advantages in industrial chains. Looking ahead, the brokerage firm took a positive view on export performance in 2021, predicting that an overall demand recovery, driven by vaccine availability and stimulus policies, will lead to an increase in the country’ exports.
Moreover, new business models such as cross-border e-commerce have emerged as new drivers of China’s foreign trade. The latest data shows that China’s cross-border e-commerce business saw rapid expansion in 2020, with the aggregate import-export volume surging by 31.1 percent from a year ago. However, the future is still not rosy for China’ foreign trade, as the world continues to grapple with resurgences of COVID-19 cases.
Last week, Premier Li Keqiang, announced an economic growth target over 6 percent in this year from 2020 still contracted 2.3 percent, emerged from the global downturn caused by the pandemic on surer footing than any other major economy. The targets, he adds, aimed to reached President Xi Jinping’ long-term goal to double the GDP by 2035.
“In setting this target, we have taken into account the recovery of economic activity,” said Li by adding that the goal would “help sustain healthy economic growth.”
In 2020, China spent hundreds of billions of dollars to stimulate the economic activity, including major infrastructure projects and cash handouts for its citizens. China, said Li, also set the budget deficit for the year at about 3.2 percent, slightly lower than last year. He also lowered the amount of money local governments will be able to issue in special bonds this year by about RMB100 billion (US$15.40 billion).
That money is primarily used to fund infrastructure projects, such as 5G networks, airports, railways, and charging stations, he adds. The premier also said that the country would no longer issue special treasury bonds this year after issued about $155 billion worth of such bonds in 2020 to fund medical equipment and technology used.
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Written by Editorial Staff, Email: theinsiderstories@gmail.com
