China trade: January-February exports, imports above expected on strong demand
- Exports grew by 60.6 per cent in combined figures for January and February compared to a year earlier, partly skewed by low base from 2020
- Imports grew by 22.2 per cent in combined figures for January and February from a year earlier
China’s imports and exports were stronger than expected in January and February, combined data released by the nation’s customs agency on Sunday showed, indicating China trade economy remained robust early in 2021 despite the continued impact of the coronavirus pandemic worldwide.
The surge in both exports and imports in percentage terms was due in part to the low comparison base from the same period last year when the coronavirus tore through the world’s second-largest economy.
But even taking this and the impact of the Lunar New Year holiday period into consideration, the export figure indicates that strong foreign demand for Chinese products – particularly medical equipment and supplies as well as home office and entertainment equipment – continued in the first quarter this year.
The strong rise in imports also indicates strong domestic demand resulting from the nation’s ongoing economic recovery from the coronavirus pandemic.
Data for January and February are combined to smooth out the impact of the Lunar New Year holiday, which falls at different times during the two months in different years.
Imports grew by 22.2 per cent in January and February from a year earlier, above December’s growth of 6.5 per cent and again stronger than the Bloomberg survey, which predicted 15 per cent growth.
This was the fifth consecutive period of import growth but, again, the import drop of 4 per cent in January and February last year means the latest figures started from a low base.
China’s total trade surplus stood at US$103.25 billion in January and February, compared to the record high of US$78.18 billion in December.
Thanks to fiscal stimulus, consumer demand in major economies such as Europe and the US has recovered, leading to higher demand for Chinese products
“In the first two months, the increase in foreign trade imports and exports was obvious, the ‘off-season was not weak’, which continued the trend of imports and exports [growth moving] from negative to positive and continuing the improvement since last June,” the General Administration of Customs said in a statement.
“Thanks to fiscal stimulus, consumer demand in major economies such as Europe and the US has recovered, leading to higher demand for Chinese products.
“The domestic economy continues to recover steadily, driving rapid growth in imports … according to a survey conducted by the General Administration of Customs, some companies stocked up in advance, mainly importing integrated circuits, energy and resource products, with the imports of integrated circuits, iron ore, and crude oil increased by 36 per cent, 2.8 per cent, and 4.1 per cent, respectively.”
The politically-sensitive trade gap with the United States remained large, with exports to the US up 87.3 per cent in the two-month period from a year earlier, while imports from the US rose 66.4 per cent.
