Strong growth at the start of the year
China’s foreign trade surprises analysts positively
March 7, 2024, 9:46 a.m
China’s economy continues to weaken. However, there is now a positive signal in foreign trade. Exports significantly exceed forecasts. Despite the economic tensions with the USA, exports there are increasing. Things look completely different in Europe.
World export champion China’s foreign trade grew surprisingly strongly in the first two months of 2024, sending signs of hope for a recovery in the global economy. As the Beijing customs authorities announced, Chinese exports rose by 7.1 percent in January and February compared to the previous year to the equivalent of 528 billion US dollars (around 484 billion euros). Experts had only expected an increase of 1.9 percent. The value of imports rose by 3.5 percent to around 125 billion US dollars – also more than experts had estimated.
Despite the bilateral disputes, exports to the USA increased by five percent. Exports to the European Union, on the other hand, fell by 1.3 percent. Due to fluctuations caused by the Chinese New Year, which always falls differently in January or February, China combines the data for both months.
The trade data signals progress in the faltering recovery of the Chinese economy, which is struggling to build on the strong performance seen before the coronavirus pandemic. “The better-than-forecast data reflects a recovery in global trade driven by the electronics sector,” said economist Xu Tianchen of the Economist Intelligence Unit. However, the increase in exports is also due to a small base effect, as exports fell by 6.8 percent in January and February 2023.
In a difficult economic environment, Chinese foreign trade fell significantly last year. Exports fell by 4.6 percent. China’s imports fell by 5.5 percent for the year as a whole. At the end of the year, however, there was already evidence of a stabilization in trade.
Despite a difficult global trading environment, China is recording positive signs in exports and imports, Trade Minister Wang Wentao said on Wednesday on the sidelines of the ongoing annual meeting of the People’s Congress in Beijing. The recovery will continue, Wang said.
China’s Prime Minister Li Qiang announced an ambitious growth target of around five percent for this year at the start of the People’s Congress on Tuesday. At the same time, however, he warned that it would not be easy to achieve the targets. “It will not be easy to achieve this year’s goals,” Li told the 2,872 delegates. You have to “work hard” and pull together on all sides.