Germans benefit and complain: China’s trade gives the world economy momentum


Germans benefit and complain
China’s trade gives the world economy a boost

The most populous country in the world has the pandemic under control. China’s economy is booming, imports are picking up and giving the world economy a boost. German companies also benefit from this. However, they also have reason to complain and criticize “business-damaging” practices.

China’s foreign trade is experiencing robust growth that is giving the second largest economy a powerful boost. In March, exports in US dollars increased by 30.6 percent compared to the same period in the previous year, as reported by the customs authorities in Beijing. Imports grew unexpectedly by as much as 38.1 percent. The increased global demand and the low comparison base last year after the sharp economic slump at the beginning of the Corona crisis in China ensured the strong growth rates. Overall foreign trade increased by 34.2 percent in March.

It was the ninth straight month of growth in Chinese exports. Imports increased for six months in a row. For the entire first quarter, this results in an increase in exports of 49 percent. The imports increased by 28 percent, as the customs further reported. In the first two months of the year, China’s exports had already jumped 60.6 percent. Imports rose 22.2 percent in January and February.

Germany in particular is benefiting from the strong recovery in China, its most important trading partner, if you think so Based on the total volume of imports and exports. According to the customs figures, imports from Germany rose by 28.4 percent in the first quarter. China delivers 60.5 percent more goods to Germany. Despite the trade war with the USA and the punitive tariffs, Chinese exports to the USA rose by as much as 74.7 percent in the three months. Imports from the USA increased by 69.2 percent.

Further travel to China is hardly possible

Since China has largely had the corona virus under control since last summer, everyday life and economic activities have normalized. After 2.3 percent growth last year, an increase of more than six percent is expected this year. In 2020, China was the only major economy in the world to see growth.

On Friday the statistical office wants to present the growth figures for the first quarter. China’s government is pursuing a strict zero-covid strategy: the authorities reacted immediately to the few smaller outbreaks in recent months with curfews, quarantine, mass tests and contact tracing. There are also strict entry restrictions. Anyone who is allowed to re-enter the country as a Chinese or who is even given a visa as a foreigner must be in a quarantine facility for at least two weeks after arrival.

German companies operating in China complain about the inadequate issuing of visas, short-term changes in regulations and sometimes poor quarantine conditions. The mechanical engineering association VDMA recently criticized it is hardly possible to send employees to the country to install, repair or maintain systems under acceptable conditions. The problems were described as large and bad for business.

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