BEIJING (Reuters) – Chinese exports in February rose at a record pace from a year earlier when COVID-19 beat the world’s second-largest economy, customs data showed on Sunday, while imports rose less suddenly.
Exports in dollars increased by 154.9% in February compared to a year earlier, while imports increased by 17.3%, the most since October 2018. The data did not include figures for January alone.
Between January and February, exports increased by 60.6% compared to a year earlier, 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 have benefited from China’s success in largely limiting the public health crisis, have helped fuel the country’s recovery from pandemic-induced paralysis.
The increase was driven by a return to external demand, customs said in a statement on its website, citing improvements in production industries in the European Union and the United States, as well as their increased imports of Chinese products due to fiscal stimulation.
“In addition, most of the employees of the producers (from China) have chosen to stay calm for the Lunar New Year holidays,” the statement said. “Our survey showed that a lot of companies in the export-oriented provinces remained open and orders that are usually only delivered after the new year were delivered normally.”
The activity of the Chinese factory usually remains inactive during the break of the Lunar New Year, which fell in mid-February this year, as workers return to their hometowns. This year, the government called on workers to avoid travel to reduce the risk of a spread of the coronavirus.
In January-February, imports increased by 22.2% compared to a year earlier, over the forecast of 15%, partly due to the storage of semiconductors and energy products, according to customs.
China recorded a trade surplus of $ 103.25 billion in the first two months. Analysts expected the trade surplus to fall to $ 60.15 billion from $ 78.17 billion in December.
“NORMAL YEARS”
In yuan terms, exports rose 50.1% in the two months from a year earlier, while imports rose 14.5%.
“Due to the impact of the new coronavirus, general trade (in yuan) in January-February last year fell by 9.7%, and the low base was one of the reasons for the higher growth 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 about 20%.”
China’s economy expanded 2.3% last year, helped by strong demand for Chinese-made goods such as medical and home equipment, although growth has been the weakest in 44 years.
This year, China has set a modest growth target of at least 6%, planning a careful one-year course disrupted by COVID-19 and amid heightened tensions with the United States.
China’s trade surplus with the United States amounted to $ 51.26 billion in January-February. Chinese customs did not show a monthly breakdown. The surplus was $ 29.92 billion in December.
Katherine Tai, President Joe Biden’s candidate for US trade representative, said last week that she would work to combat a number of “unfair” Chinese trade and economic practices.
Reporting by Stella Qiu and Ryan Woo; Additional reporting by Colin Qian; Edited by Ana Nicolaci da Costa and William Mallard