The Chinese economy grew by about 2 percent in 2020, becoming one of the only major countries to report this growth amid an economically devastating pandemic.
Economic activity in China fell nearly 7 percent in the first quarter of last year, the Associated Press reports. However, the government’s decision to quickly close most of its economy seemed to have allowed the country to reopen companies sooner than others.
However, the PA reported that 2020 was still the worst year in terms of growth for China since the 1990s, when the country faced international isolation after the democratic movement in the square. of Tiananmen.
Iris Pang, ING’s chief economist in the China region, told the AP that “it is too early to conclude that this is a full recovery,” despite the relatively positive growth the country has seen.
“External demand has not yet fully recovered. That’s a big hurdle, ”Pang added.
Demand for medical supplies, such as masks, has been an advantage for Chinese-made exports, but strong tariffs demanded President Trump
Donald Trump: Iran convicts US businessman of espionage: DC denounces, state capitals see few problems and strong security amid protests. Pardon claimants have paid tens of thousands to Trump allies to pressure the president: NYT MORE have negatively affected exporters.
President-elect Biden has indicated that he will maintain Trump’s tariffs once he takes office. In his first interview after winning the presidential election, Biden said Trump’s approach to China had been “backward,” while also stating that he expected the country to play by “international standards.” its administration.
The effect of the pandemic on the world economy brought China closer to the United States in terms of economic output, according to AP, with a total activity of about $ 15.6 trillion, about 75% of the $ 20.8 trillion. of dollars projected for the United States by the International Monetary Fund. The US economy is expected to shrink by approximately 4.3% by 2020.