BEIJING – China’s imports and exports boomed again last month, data today showed, reaffirming the recovery in the world’s No. 2 economy with demand picking up in key overseas markets as they emerge from last year’s Covid-19 crisis.
The readings highlight the impact that vaccines and the easing of containment measures is having, with expectations for further improvement over the next few months.
Imports soared a forecast-busting 38.1% on-year as the country’s army of consumers increasingly return to some form of normality after the 2020 crisis forced businesses to shut and people to stay home.
The figure is a huge increase from the 22.2% rise seen in January-February, and the biggest hike since February 2017.
Exports rose 30.6%, well off the 38% increase tipped in a Bloomberg forecast, but still among the highest readings since early 2018. Overseas shipments jumped more than 60% in January-February.
The outsized increases are down to the fact that they are compared with a low base level from last year, when the pandemic was at its height in China and spreading elsewhere.
Iris Pang, ING chief economist for Greater China, said the export numbers are “very distorted”.
But, a key factor behind the imports spike is electronics shipments, she said, noting that Taiwan’s recent water shortage hampered its ability to produce at overcapacity.
“They are exporting some semiconductor parts to (mainland) China, to finish production there.”
Integrated circuit imports surged 33.6% in the first quarter, while those of diodes and similar semiconductor devices rose more than 50%, customs data showed.
“We’re still seeing stocking up... in terms of electronic integrated circuits,” said OCBC Bank head of Greater China research Tommy Xie.
This suggests preparation “for a potential technology war between China and the US”, or further tensions between the countries.
A rise in commodity prices recently also bumped up import values, said analysts.
China’s overall trade surplus was US$13.8 billion (RM57 billion), according to the customs data, while its surplus with the United States climbed about 40% to US$21.4 billion.
The US trade surplus was a key point of contention during the trade war with former US president Donald Trump.
“China has demonstrated very resilient growth to become the global industrial powerhouse supplying goods during the pandemic,” said Xie.
He said this is likely to continue, given constraints on supplies globally and international demand picking up as the economic outlook improves. – AFP, April 13, 2021
