China exported more to the rest of the world last year than ever before, despite the global downturn linked to COVID-19 pandemics, figures from the country’s customs administration showed Thursday. Surplus hit a historic high of $ 78 billion in December.
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Exports grew by double-digit numbers for the third consecutive month, up 18.1% in dollar terms in December from a year earlier, on the back of strong sales of medical products and pandemic-related products such as computers home.
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This happened despite a sharp decline in the country’s European and American markets, and the 6% rise in China’s currency against the dollar in 2020.
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China went through an industrial recovery that began in April, after strong measures were taken to control the outbreak of the COVID-19 pandemic that began in the Wuhan region. Imports also rose strongly in December, up 6.5% on the month.
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China’s economy was the only one of the world’s major powers to grow in 2020. Official domestic product numbers will be released next week and, according to most forecasts, they should show growth of around 2% last year. That compares with a 4% decline for the global economy.
Read: Two turned away when a WHO team began investigating the source of a pandemic in Wuhan
The preview: Economists expect China’s export growth to slow in the coming months if and when western economies manage to control the second wave of COVID-19 pandemics and resume normal activity. However, as evidenced by rising imports, China ‘s domestic market and consumers may be able to help sustain growth – if that happens.
The strength and stability of China’s economy would then be a boon for the recovery of Europe and the US, whose exports will benefit from a fast-growing market. That should help reduce potential defensive backlash, especially since U.S. President Joe Biden’s administration is unlikely to be as strong about China’s trade as it was before.
From the archives (December 2020): China’s ‘unstable’ global luxury market share is almost doubling amid pandemics