BEIJING (Reuters) – China’s February exports grew at a record pace from the previous year, when COVID-19 attacked the world’s second-largest economy, customs data showed on Sunday. imports increased less intensely.
Exports in dollars soared 154.9% in February compared to a year earlier, while imports rose 17.3%, most since October 2018. The data did not include the figures of January.
During the period January-February, exports increased by 60.6% over the previous year, when blockades to contain the pandemic paralyzed the country’s economic activity. This exceeded analysts’ forecast in a Reuters poll for a 38.9% increase.
Strong exports, which benefited from China’s success in largely containing the public health crisis, have helped fuel the country’s recovery from pandemic-induced paralysis.
The increase was driven by a rise in foreign demand, customs said in a statement on its website, citing improvements in the manufacturing industries of the European Union and the United States, and its increase in imports. of Chinese products thanks to fiscal stimulus measures.
“In addition, most manufacturing employees (in China) chose to stay on vacation during the Lunar New Year,” the statement says. “Our survey showed that many companies in the export-oriented provinces remained open and orders that are normally only delivered after the new year had been delivered normally.”
The activity of the Chinese factory is usually inactive during the break of the Lunar New Year, which fell in mid-February this year, when workers returned to their hometowns. This year, the government called on workers to avoid traveling to curb the risk of coronavirus spread.
In January and February, imports increased by 22.2% over the previous year, above the expected 15%, in part due to the storage of semiconductors and energy products, according to customs.
China recorded a trade surplus of $ 103.225 billion during the first two months. Analysts had expected the trade surplus to shrink to $ 60.115 billion, up from December 78.17 billion.
“NORMAL YEARS”
In yuan terms, exports increased by 50.1% in the two months prior to the previous year, while imports increased by 14.5%.
“Due to the impact of the new coronavirus, overall trade (in yuan terms) in January-February last year fell 9.7%, and the low base was one of the reasons for the higher ‘this year,’ customs said. “But even compared to normal years, such as the comparable periods of 2018 and 2019, China’s global 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 for working from home, although growth was the fastest growing. weak in 44 years.
This year, China has set a modest growth target of at least 6%, planning a careful one-year course interrupted by COVID-19 and amid tensions with the United States.
China’s trade surplus with the United States stood at $ 51.266 billion in January-February. Chinese customs were not broken down monthly. The surplus was $ 29.9 trillion in December.
Katherine Tai, President Joe Biden’s candidate for U.S. trade representative, said last week she would work to combat a number of China’s “unfair” economic and trade practices.
Stella Qiu and Ryan Woo reports; Additional reports by Colin Qian; Edited by Ana Nicolaci da Costa and William Mallard