Chinese Customs data outperforms, exports grow slower By Investing.com

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By Gina Lee Investing.com – Chinese exports beat growth expectations in December, according to customs data released earlier in the day, with continued COVID-19 outbreaks fueling demand for Chinese goods, although foreign buyers paid more for them thanks to a stronger yuan. The data showed that all the metrics performed better. it grew 18.1% year-on-year compared to the 15% forecast produced by Investing.com, but below the 21.1% in November. grew 6.5% year-on-year, exceeding the 5% forecast growth and 4.5% in November. The impressive rebound in China’s manufacturing sector in 2020 was largely driven by buoyant exports as the world grappled with the COVID-19 pandemic. The country is expected to be the only major economy to experience positive growth in 2020, with exports growing 3.6% for the full year and imports falling 1.1%. While COVID-19 will bring challenges, a revived global economy and a steady recovery in China’s domestic economy provide a foundation for China to sustain trade growth in 2021, customs spokesman Liu Kuiwen said in a briefing. Chinese exports are expected to receive continued support from sustained demand for medical supplies and work-from-home products as trading partners continue to grapple with the COVID-19 outbreaks. However, concerns are mounting that the stronger yuan and rising commodity prices could reduce exporters’ profits. The yuan strengthened 6.7% in 2020 land trade, the first annual increase in three years. “Exports continued to perform well last month, as renewed closures overseas ensured that the shift in consumption from services to goods persisted in many of China’s trading partners,” Capital Economics senior economist said in a note , Julian Evans-Pritchard. But Evans-Pritchard expects exports and imports to fall by the end of 2021, as the stimulus implemented in 2020 wears off and consumption abroad reverts to pre-COVID-19 patterns as vaccines fuel the recovery. “We believe that trade will remain resilient in the short term, but will weaken later this year,” the note added. Meanwhile, China was $ 78.17 billion in December, the highest reading in Refinitiv’s records dating back to 2007. It was also higher than the forecast of $ 72.35 billion and the $ 75 figure. , 40 billion November. The country’s trade surplus with the United States, the country with which a bitter trade war has been fought in recent years, dropped to $ 29.92 billion in December from $ 37.42 billion in November. US President-elect Joe Biden has indicated that he will not immediately cancel the phase one trade agreement that incumbent President Donald Trump signed with China in February 2020. Biden also said he would not take action to eliminate current tariffs on Chinese exports.

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