China’s export growth rapidly increased in October, boosting the total of this year. For the first time, China got back to the pre-coronavirus level.
October’s exports rose 11.4% over a year earlier to $237,2 billion. This number is approximately two percent higher than the export growth of September. For the first time since the beginning of coronavirus, China expected growth of export. Most of the increase is thanks to the U.S. demand. Besides increasing the efficiency of exporting, China is more sufficient in terms of importing. Imports of the world’s most populated nation grew by 4,7%. The value of it is $178,4 billion.
The second-largest global economy benefited from demands for masks and medical supplies. China respectively has large stock for these goods than its competitors. October’s exports of China also marked the first time the nation registered a positive growth figure. Export for the first ten-month of China rose 0.5% over the same period a year earlier to $2 trillion.
The demand from the U.S. helped China’s export recover strongly after the pandemic. In October, exports to the U.S. from China gained 22,5% over a year ago to $43.8 billion. In September, this number was only 20,5%.
Although there was a stressful economic war between the U.S. and China, the exporting and importing process between the two nations are aggressive in the last two months. China proved that the U.S. could not deny the attraction of this market. The potential of the world’s most populated nation is undeniable.
The politically sensitive trade gap with the United States expanded 18,5% to $31,4 billion.
China is also the only major economy to grow this year while activity in the U.S., Japan, and Europe is shrinking. After the earlier shutdown of factories because of the global pandemic, China overturned the economical shrink with an impressive acceleration. Their growth rebounded 3,2% in the second quarter of 2020, and they accelerated to 4,9% in three months ending in September.
Automakers and factories in China are mostly back to their normal workflow which surges the necessity for importing iron ore, copper, and other industrial materials.
Whereas the importing and exporting of China to the 27-nation European Union is shrinking. Exports fell 21% in October to $22,7 billion. Imports of goods from Europe shank 20,4% to $33,6 billion. The surplus between China and the EU is widened by 149% to $33,3 billion.
The earlier scandal of exporting unqualified masks to Europe is believed to be the main cause of this shrinking.
Nonetheless, the Chinese government can be pleased because their economy is getting back to the normal level. The demand from the U.S. helped them get back to the pre-corona level, and it hopes to be even better in the upcoming year of 2021.
via AP