China’s economy increased by about 2% in 2020, making it one of the only major countries to report such growth amid an economically devastating pandemic.
Economic activity in China shrank by almost 7% in the first quarter of last year, reports the Associated Press. However, the government’s decision to quickly close most of its economy appeared to have allowed the country to reopen business earlier than others.
However, the AP 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 democracy movement in Tiananmen Square.
Iris Pang, ING’s chief economist for 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. This is a major obstacle, “added Pang.
Demand for medical supplies, such as masks, has been a boon for Chinese exports, but heavy tariffs President Trump
Donald TrumpIran condemns American businessman on espionage charge: DC report, capitals see few problems, heavy security amid protest concerns Those seeking forgiveness paid Trump’s allies tens of thousands to lobby President: NYT MORE have negatively impacted exporters.
President-elect Biden has indicated that he will keep Trump’s tariffs in effect once he takes office. In his first interview after winning the presidential election, Biden said that Trump’s approach to China was “backwards”, while saying that 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 US in terms of economic output, notes the AP, with its total activity reaching about $ 15.6 trillion, about 75 percent of the projected $ 20.8 trillion. to the USA by the International Monetary Fund. The U.S. economy is expected to shrink by 4.3% in 2020.