BEIJING (Reuters) – China’s exports grew at a record pace in February compared to a year earlier, when COVID-19 hit the world’s second-largest economy, customs data showed on Sunday, while imports grew less sharply.
Dollar exports shot up 154.9% in February from a year earlier, while imports rose 17.3%, the highest number since October 2018. The data does not include figures for January alone.
In the January-February period, exports rose 60.6% from a year earlier, when lockdowns to contain the pandemic paralyzed the country’s economic activity. That surpassed analyst forecast in a Reuters poll for a 38.9% increase.
Strong exports, which benefited from China’s success in largely curbing the public health crisis, have helped the country recover from pandemic paralysis.
The rise was driven by a rebound 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 their increased imports of Chinese products thanks to fiscal stimulus.
In addition, a majority of production workers (in China) chose to stay during the Chinese New Year holidays, “the statement said. “Our research showed that many companies in export-oriented provinces remained open and that orders that normally do not arrive until after the new year have been delivered normally.”
Chinese factory activity tends to go idle during the Lunar New Year pause, which fell in mid-February this year, as workers return to their hometowns. This year, the government appealed to workers not to travel to curb the risk of the coronavirus spreading.
In January-February, imports rose 22.2% from a year earlier, above the forecast of 15%, partly due to the storage of semiconductors and energy products, customs said.
China posted a trade surplus of $ 103.25 billion in the first two months. Analysts had expected the trade surplus to narrow 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%.
“The impact of the novel coronavirus caused total trade (expressed in yuan) to decline 9.7% in January-February last year, and the low base was one of the reasons for the greater increase this year,” customs said. “But even compared to normal years, such as the comparable periods in 2018 and 2019, overall Chinese trade growth was around 20%.”
The Chinese economy grew 2.3% last year, helped by solid demand for Chinese-made goods such as medical and home office equipment, although growth was the weakest in 44 years.
This year, China has set a modest growth target of at least 6%, planning a cautious one year disrupted by COVID-19 and amid heightened tensions with the United States.
China’s trade surplus with the United States was $ 51.26 billion in January-February. Chinese customs did not provide a monthly breakdown. The surplus was $ 29.92 billion in December.
Katherine Tai, President Joe Biden’s candidate to become the US Trade Representative, said last week that she would work to combat a series of “unfair” Chinese trade and economic practices.
Reporting by Stella Qiu and Ryan Woo; Additional reporting by Colin Qian; Adaptation by Ana Nicolaci da Costa and William Mallard