BEIJING (Reuters) – China’s exports in February grew at a faster pace than a year earlier when COVID-19 hit the world’s second-largest economy, consumer data showed on Sunday, while imports rose so quickly.
Exports in dollar terms rose 154.9% in February compared to a year earlier, while imports gained 17.3%, mostly from October 2018. The data did not include figures for the January only.
In the January-February period, exports jumped 60.6% from a year earlier, when locks to make the pandemic paralyzed the country’s economic activity. That was higher than analysts ’forecast in a Reuters poll for a 38.9% increase.
Strong exports, which have benefited from China’s success in largely addressing the public health crisis, have helped bring the country back from paralysis with a pandemic.
The increase was driven by a reversal in foreign demand, practices said in a statement on its website, citing developments in manufacturing industries in the European Union and the United States, and increased imports. of Chinese products thanks to fiscal stimulus measures.
“In addition, the majority of manufacturing workers (in China) have chosen to stay on the Lunar New Year holidays,” the statement said. “Our study showed that many companies in export-oriented areas remained open, with orders not normally delivered after the new year being delivered normally. ”
Chinese factory activity usually takes off at the time of the Lunar New Year break, which fell in mid-February this year, when workers return to their homes. This year, the government appealed to workers to avoid travel to prevent the risk of transmission of the coronavirus.
In January-February, imports increased 22.2% from a year earlier, above the 15% forecast, partly due to stock accumulation of semiconductors and energy products, according to practices.
China posted a trade surplus of $ 103.25 billion for the first two months. Analysts had expected trade surpluses to narrow to $ 60.15 billion from $ 78.17 billion in December.
‘NORMAL YEAR’
For Yuan, exports rose 50.1% in the two months from a year earlier, while imports gained 14.5%.
“As a result of the effects of the new virus, total trade (in yuan) in January-February last year fell by 9.7%, and the low base was one of the reasons for the larger increase in year, ”said customs. “But even compared to normal years, such as the comparable periods of 2018 and 2019, China’s total trade growth was around 20%.”
China’s economy expanded 2.3% last year, helped by strong demand for Chinese-made goods such as medical equipment and home-made work, despite the weakest growth in 44 years.
This year, China has set a median growth target of at least 6%, plotting a cautious out-of-year course on which COVID-19 worries and tensions are higher with the United States.
China’s trade surplus with the United States was $ 51.26 billion in January-February. Chinese customs did not bring a monthly break. The surplus was $ 29.92 billion in December.
Katherine Tai, President Joe Biden’s nominee for U.S. trade representative, said last week that she would work to combat a range of “unfair” Chinese trade and economic practices.
Reciting with Stella Qiu and Ryan Woo; Additional commentary by Colin Qian; Edited by Ana Nicolaci da Costa and William Mallard