JAKARTA (TheInsiderStories) – China’ merchandise exports in US Dollar denominated rose 21.1 percent in November compared to last year (YoY), the fastest pace in two years, reported by the General Administration of Customs. The number up 9.7 percentage points from October.
While, merchandise imports growth continued to moderate to 4.5 percent in annual basis, dropped 0.2 percentage point during the same period. It said, strong overseas demand supported Chinese exports. Despite tightening lockdowns in the United States (US) and European Union (EU) due to the re-escalation of COVID-19, overseas demand remained strong.
The manufacturing purchasing managers’ index (PMI) in the US and the block areas stayed in expansion territory and Japan’ PMI contracted slower. In addition, low base figure in the same period last year and Christmas – the traditional holiday shopping season – also has contributed to China’ exports growth.
According to Yating Xu, the senior economist at IHS Markit, China’ exports are expected to maintain the current strength in the near term as re-lockdown in the Europe and the US due to the re-escalation of pandemic may impede global production recovery and the global supply shortage will continue to benefit China’ exports.
Net exports are expected to be a positive contributor to China’ real GDP growth in 2020. In the first half of 2020, exports from China unexpectedly increased by 0.5 percent (YoY) to $213.57 billion, after a 3.3 percent fall in the previous month, as global demand started to improve after more countries lifted coronavirus-led lockdown restrictions and social distancing measures.
Demand for virus-related medical products, such as face masks and personal protective equipment, has helped China sell more products overseas. In contrast, exports of refined products declined 28.6 percent, those of unwrought aluminum and products were down 30 percent, and steel fell 30.3 percent, customs data showed on July 14.
Meantime, China’ imports in June rose for the first time since the coronavirus crisis paralyzed the economy this year, as demand for commodities surged on the back of government stimulus. China’ imports in June rose 2.7 from a year earlier, confounding market expectations for a 10 percent drop. They had fallen 16.7 percent the previous month.
Beijing has doled out aggressive stimulus to support domestic demand even as a resurgence in coronavirus infections around the world has raised questions about the strength of a rebound in global economic activity.
Indeed, iron ore imports jumped to the highest in 33 months in June, the trade data showed, fueled by rising shipments from miners and robust demand. Crude oil imports also hit an all-time high amid bargain hunting by Chinese refiners as oil prices collapsed.
China’ imports from the US rose 11.3 percent in June, reversing a double-digit declining trend seen after the coronavirus outbreak. The mainland’ trade surplus with the US widened to $29.41 billion in June from $27.89 billion in May, the data showed.
The country’ trade surplus for June stood at $46.42 billion, compared with a surplus of $62.93 billion in May, the data showed.
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