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Growth despite and because of Corona: "No end to the China boom in sight"

2021-01-14T10:49:53.719Z


The current foreign trade figures show a clear plus: China emerges as the winner of the pandemic among the economic powers.


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The Chinese economy was able to increase its exports primarily through products that are in demand during the corona pandemic

Photo: CARLOS BARRIA / REUTERS

While many countries are still preparing for tough economic times, China is heading into the new year with a tailwind: the economy presented its foreign trade figures on Thursday - with a significant plus.

Despite the Corona recession, China exported more to many trading partners in 2020 than in the previous year.

In comparison, exports in dollars rose by 3.6 percent, according to the customs authorities in Beijing.

This is likely to be primarily due to products that are in demand around the world during the corona pandemic - such as medical equipment such as masks or screens for working from home.

"The demand for electronics for the home office and for hygiene articles is heating up the Chinese export industry properly," said chief economist Thomas Gitzel from VP Bank.

"There is currently no end to this boom in sight as long as the virus sets the pace in large parts of the world."

This outlook is not only positive for China: "If China's production is running at full speed, it needs machines," explained Gitzel.

"These often come from Germany." The US industry also benefited from the China boom.

The only economic power on a growth path

At the end of the year, Chinese exporters achieved a strong final spurt: In December alone, exports increased by 18.1 percent compared to the same month last year.

Economists surveyed by Reuters had only expected an increase of 15.0 percent, after an increase of 21.1 percent in November.

For this reason, too, the People's Republic is likely to have grown as the only major economic power last year.

The International Monetary Fund (IMF) is assuming an increase in gross domestic product of 1.9 percent.

This year there should be an economic growth of 7.9 percent.

Trade should also increase in the new year, as a spokesman for the customs authority said.

The corona pandemic continues to pose challenges for the world export champion.

Lockdowns at key trading partners in Europe and the US could dampen demand for Chinese goods.

Chinese imports initially decreased by 1.1 percent last year, but rose again by 6.5 percent in December.

This is good news for Germany, for whom China is the most important export customer after the USA.

Icon: The mirror

zob / Reuters

Source: spiegel

All business articles on 2021-01-14

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