In July 2020, for the first time, exports and imports rose compared to the previous year / Medical equipment proved to be an export hit
China’s economy appears to be recovering from the consequences of the Covid 19 pandemic: despite the slump in the first three months 2020, the balance of foreign trade for the whole of the first half of the year was less severe than had been expected, and in June there was even a year-on-year increase in both exports and imports, for the first time.
“Foreign trade of goods went down 3.2 percent year on year in the first half of this year to 14.24 trillion Yuan (about 2 trillion US-dollars), narrowing by 1.7 percentage points compared with the decrease for the first five months,” the General Administration of Customs (GAC) informed these days. “In June, foreign trade increased by 5.1% compared to the previous year, with exports and imports growing by 4.3% and 6.2%, respectively.”
In a commentary in the governmental news agency, Xinhua, was said that “China’s foreign trade growth boosts hope for world economy.”
Southeast Asia Southeast Asia was China’s most important trading partner. “In the first half of 2020, trade with ASEAN registered RMB2.09 trillion, an increase of 5.6%, accounting for 14.7% of China’s total foreign trade volume. Trade with countries involved in the Belt and Road Initiative reached RMB4.2 trillion, with a slight decline of 0.9%, which is 2.3 percentage points lower than the country’s overall decrease in foreign trade year on year”, according to GAC.
Trade with countries in the West continued to decline: „Trade with EU totaled RMB1.99 trillion, down by 1.8%. Trade with US stood at RMB1.64 trillion, down by 6.6%.” Exports to the US were 1.25 trillion Yuan, down 8.1 percent, imports from the US were 395.62 billion Yuan, down 1.5 percent.
Medical equipment for the fight against Covid-19 proved to be an export hit: “In the first half of 2020, exports of textile products including face masks surged by 32.4%. Exports of medicines and pharmaceutical products, and medical equipment increased by 23.6% and 46.4%, respectively.”
The customs administration also connects export growth in mobile devices with the pandemic: “Driven by the stay-at-home economy, the exports of laptops and mobile phones went up by 9.1% and 0.2%, respectively.”
(27.07.2020, USA: 07.27.2020)