© Reuters. Cranes and containers are seen at Yantian port in Shenzhen, following the new outbreak of coronavirus disease (COVID-19)
BEIJING (Reuters) – Chinese February exports grew at a record pace over the previous year, when COVID-19 hit the world’s second largest economy, customs data showed on Sunday, while imports increased less.
Dollar exports soared 154.9% in February compared to the previous year, while imports increased by 17.3%, the highest increase since October 2018. The data does not include data for January alone.
In the period from January to February, exports jumped 60.6% in relation to the previous year, when blocks to contain the pandemic paralyzed the country’s economic activity. This surpassed 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, helped fuel the country’s recovery from a pandemic-induced paralysis.
The increase was driven by a recovery in foreign demand, customs said in a statement on its website, citing improvements in manufacturing industries in the European Union and the United States, and its increase in imports of Chinese products thanks to fiscal stimulus measures.
“In addition, the majority of manufacturing employees (in China) chose to stay during the Lunar New Year holidays,” the statement said. “Our research showed that many companies in export-oriented provinces have remained open and orders that are normally only delivered after the new year have been delivered normally.”
Chinese manufacturing activity generally falls asleep during the Lunar New Year holiday, which fell in mid-February this year, when workers returned to their hometowns. This year, the government called on workers to avoid travel to contain the risk of spreading the coronavirus.
In the accumulated from January to February, imports increased 22.2% in relation to the previous year, above the 15% projection, partly due to the stock of semiconductors and energy products, according to customs.
China recorded a trade surplus of $ 103.25 billion in the first two months. Analysts had expected the trade surplus to decline to $ 60.15 billion from $ 78.17 billion in December.
‘NORMAL YEARS’
In yuan, exports increased by 50.1% in the two months over the previous year, while imports increased by 14.5%.
“Due to the impact of the new coronavirus, general trade (in terms of yuan) in January-February last year fell 9.7%, and the low base was one of the reasons for the biggest increase this year,” said customs. “But even when compared to normal years, like comparable periods in 2018 and 2019, China’s overall trade growth was around 20%.”
China’s economy grew 2.3% last year, helped by solid demand for products made in China, such as medical equipment and work at home, 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 course in a year interrupted by COVID-19 and amid increased tensions with the United States.
China’s trade surplus with the United States was $ 51.26 billion in January-February. Chinese customs did not give a monthly breakdown. The surplus was US $ 29.92 billion in December.
Katherine Tai, appointed by President Joe Biden to be a US trade representative, said last week that he would work to combat a range of China’s “unfair” commercial and economic practices.