China’s economy grew by about 2% in 2020, becoming one of the only major countries to report such growth amid an economically devastating pandemic.
China’s economic activity fell by almost 7% in the first quarter of last year, the Associated Press reports. However, the government’s decision to quickly close most of its economy appears to have allowed the country to reopen its business sooner than others.
However, the PA reported that 2020 was still the worst year of growth for China since the 1990s, when the country faced international isolation following the democratic movement in Tiananmen Square.
Iris Pang, ING’s chief economist for the Chinese region, told the PA that “it is too early to conclude that this is a complete recovery”, despite the relatively positive growth the country has seen.
“External demand has not yet fully recovered. This is a big obstacle, “Pang added.
Demand for medical supplies, such as masks, has been an advantage for Chinese exports, but heavy tariffs charged by President Trump
Donald TrumpIran condemns American businessman for espionage: DC reports, state capitals see few problems, heavy security amid protests Concern seekers have paid tens of thousands of Trump allies to lobby the president: NYT MORE adversely affected exporters.
President-elect Biden has indicated that he will keep Trump’s tariffs in place once he takes office. In his first interview after winning the presidential election, Biden said Trump’s approach to China was “backward”, saying he expected the country to play by “international standards” during his administration.
The effect of the pandemic on the global economy has brought China closer to the United States in terms of economic output, the AP notes, with a total activity of about $ 15.6 trillion, about 75% of the $ 20.8 trillion projected for the United States by International Monetary Fund. The US economy is expected to shrink by about 4.3% in 2020.