World Export Champion: China’s Export Surplus At Record Level

Status: 01/14/2022 12:56 p.m.

China’s foreign trade surplus peaked last year – despite the chip and semiconductor shortage, which affected production. Exports hit the $ 3.3 trillion mark.

China posted a record export surplus in 2021. Exports topped imports by $ 676.43 billion, an increase of 29.9 percent from the previous year, according to Beijing customs officials. This is the highest value the country has ever reached since statistics began in 1950. Chinese imports rose 30.1% over the year as a whole, after falling by 1.1 % in 2020.

Over the past year, there has been a surge in global demand for “Made in China” products. For example, computers and other electronic devices required for working from home due to the pandemic were in particular demand. Medical products such as masks were also needed around the world due to the pandemic.

Overall, exports hit $ 3.3 trillion last year, despite bottlenecks in processor chips for smartphones and other goods. “We expect Chinese exports to remain strong in the current first quarter due to robust global demand,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management. “At the moment, strong exports may be the only engine helping the Chinese economy.”

GDP is expected to grow by eight percent

In terms of gross domestic product, experts expect a particularly strong increase of 8.0% for the past year due to the catch-up effects. The world’s second-largest economy after the United States will continue to grow vigorously in 2022, according to a survey of economists by the Reuters news agency. “Sufficient political support must be provided, especially in the first half of the year, to ensure that economic growth does not fall below Beijing’s comfort zone,” said Tommy Wu of Oxford Economics. Thus, the central bank could ease its monetary policy.

However, the development of the Chinese economy will largely depend on the spread of the new variant of the Coronavirus Omikron. Observers fear the economic outlook could deteriorate significantly, especially with the spread of Omikron, as China’s containment strategy could reach its limits due to the more easily transmissible variant of the coronavirus.

Last Sunday, the first local cases of omicron in China were detected in the port metropolis of Tianjin. Soon after, Omicron infections also occurred in the port city of Dalian and Anyang in eastern China. As a result, the Beijing government has sealed off the mega-cities in order to implement the zero Covid policy.

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