China’s exports spike to highest in two decades

Published March 8, 2021
Cranes and containers are seen at the Yantian port in Shenzhen, China in this file photo. — Reuters
Cranes and containers are seen at the Yantian port in Shenzhen, China in this file photo. — Reuters

BEIJING: China’s export growth jumped to the highest in over two decades, official data showed on Sunday, with imports also surging in a sharp bounceback from the coronavirus outbreak that had brought activity to a near halt.

Electronics and textile exports such as masks contributed to the spike in outbound shipments, as demand for work-from-home supplies and protective gear against the virus outbreak soared during the pandemic.

Exports spiked 60.6 percent on-year in the January-February period, well above analysts’ expectations, while imports rose 22.2 percent, official data showed on Sunday.

The latest figures stand in stark contrast to last year’s fall of around 17 percent in exports and 4 percent drop in imports.

The country struggled to contain the spread of Covid-19 early on, with consumers staying home and businesses seeing a slow return to operations.

The customs administration said comparison to last year is also likely to have bolstered the latest figures, saying in a statement that the “low base is one of the reasons for the larger increase this year.”

On Sunday, official data sho­wed that electronics exports rose 54.1 percent, while textiles including masks rose 50.2 percent.

China’s overall trade surplus came in at $103.3 billion, its customs administration said.

Meanwhile, the country’s trade surplus with the US — a key point of contention during the trade war pursued by former president Donald Trump — doubled from the same period last year to $51.3 billion.

Chinese authorities started combining January and February trade data last year, while it battled the coronavirus outbreak.

This is in line with how some other indicators are released, to smooth over distortions from the Lunar New Year holiday, which can fall in either month.

China’s foreign trade data remained strong despite the “off-season”, the customs authority said on Sunday.

Trade was also high due to a recovery in production and consumption in major economies such as Europe and the United States amid the coronavirus pandemic, as well as improvements in domestic consumption.

Although business activity usually falls during the Lunar New Year period when workers return to their hometowns, official appeals to avoid travelling this year to keep the Covid-19 outbreak in check supported production, the customs administration added.

“Many enterprises in major foreign trade provinces such as Guangdong and Zhejiang maintained production during the Lunar New Year,” it said. “Market demand is expected to rebound further.” Some companies have also been stocking up on goods such as integrated circuits, iron ore and crude oil imports.

“Global electronics demand has risen strongly due to the global shift to remote working and online shopping,” said Rajiv Biswas, Asia-Pacific chief economist for IHS Markit.

This had driven demand for electronics products such as laptops, mobile phones and wearables, he said.

Meanwhile, the strong import growth also reflected a “normalisation of consumer spending” in China, he said, after a severe slump due to lockdowns.

Published in Dawn, March 8th, 2021

Opinion

Diverging paths
Updated 15 Apr 2021

Diverging paths

It seems that Imran Khan is feeling the pain of the adjustment that he has had to undertake.
Judging the judges
15 Apr 2021

Judging the judges

In the end, like Joan of Arc, they were made to pay with their blood.
People to people
Updated 15 Apr 2021

People to people

By facilitating access, the governments of India and Pakistan can start to build trust and understanding between the two publics.
Hostage to extremism
Updated 14 Apr 2021

Hostage to extremism

Once again, the TLP has succeeded in bringing the administration to its knees.

Editorial

Afghanistan exit
Updated 15 Apr 2021

Afghanistan exit

Afghanistan has suffered for decades as powerful local players have refused to compromise and have insisted on hogging power.
15 Apr 2021

New census

EARLIER this week, the Council of Common Interests approved the controversial National Population and Housing ...
15 Apr 2021

With no place to go

No matter where one looks, one can’t escape the heartrending sight of scores of children of all ages begging, ...
TLP protests
Updated 14 Apr 2021

TLP protests

For the good of the country, and its image as a nation where extremism has no place, such groups must be strictly reined in.
14 Apr 2021

PPP’s formal exit

THE PPP’s formal resignation from all offices of the PDM comes as no surprise after weeks of tension and public...
14 Apr 2021

Natanz attack

AS the P5+1 and Iran try to breathe life back into the JCPOA, as the nuclear deal is officially known, it appears...