CHINA 2020 EXPORTS UP DESPITE VIRUS; SURPLUS SURGES TO $535B

China’s exports rose in 2020
despite pressure from the
coronavirus and a tariff war
with Washington, boosting
its politically volatile trade
surplus to $535 billion, one of
the highest ever reported.

Exports increased 3.6%
over 2019 to $2.6 trillion, an
improvement on the previous
year’s 0.5% gain, customs data
showed Thursday. Imports
edged down 1.1% to just over
$2 trillion, but growth was
strong in the second half after
China became the first major
economy to revive following
the pandemic.

China’s exporters benefited
from the relatively early
reopening of its economy
and demand for masks and
other Chinese-made medical
supplies.
Exporters have taken
market share from foreign
competitors that face still
anti-virus curbs, but that
advantage is expected to
fade as coronavirus vaccines
are rolled out and other
economies return to normal.
Demand for medical goods
also is receding.

“The current strength of
exports is unlikely to be
sustained indefinitely,” said
Julian Evans-Pritchard of
Capital Economics in a report.
He said imports “are likely to
drop back” as the government
reduces high spending and
other support for economic
activity.

Global exports surged 18.1%
in December over a year
earlier to $281.9 billion.
Imports rose 6.5% to $203.7
billion, reflecting a rebound
in Chinese consumer demand
after the ruling Communist
Party reopened factories,
shopping malls, offices and
auto dealerships.
December exports to the
United States were $4.6
billion. Imports of American
goods were $1.6 billion, giving
China a $3 billion surplus.

“In 2020, China made
outstanding achievements in
foreign trade, which did not

come easy,” said a statement
by the General Administration
of Customs of China. It warned
against complacency, saying
the global economic situation
“is still grave and complex.”
The election of Joe Biden to
succeed President Donald
Trump has raised questions
about the future of Trump’s
fight with Beijing. Economists
and political analysts expect
few changes due to widespread
frustration in Washington with
China’s record on trade and
human rights and complaints
about technology theft and
spying.

Beijing promised to buy more
American exports in the “Phase
1” agreement last January
aimed at ending the tariff war.
The two governments agreed
to postpone further planned
tariff hikes on each other’s
goods, but penalties on billions
of dollars of imports remain.

China fell behind on meeting
those commitments but
started to catch up as demand
rebounded.
China is on track to be the
only major economy to grow
in 2020 while activity in the
United States, Europe and
Japan falls.

The world’s second-largest
economy shrank by 6.8%
from a year earlier in the
first three months of 2020.
Growth rebounded to 3.2%
in the second quarter and
accelerated to 4.9% in the three
months ending in September.
Chinese imports are growing
faster by volume than by value
because prices of oil and
other commodities sank after
anti-virus curbs on travel and
business depressed global
demand.

Also in 2020, exports to Europe
rose 6.7% to $39.1 billion
despite anti-virus controls that
shut down travel and business
in major markets. Imports of
European goods rose 2.3%,
giving China a surplus of $13.3
billion.