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Mainland’s export to U.S. may jump to 20%

The trade surplus for the two months reached $103.25 billion, compared with a deficit of $7.21 billion for the same period last year

GLOBALTIMES

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BEIJING (Global Times) — Amid a steady recovery in the domestic economy and strong overseas demand, China posted a year-on-year gain of 60.6 percent in its exports during the first two months of 2021, the General Administration of Customs (GAC) said on Sunday.

Exports reached $468.87 billion during the January-February period in US dollar terms, while imports rose 22.2 percent to $365.62 billion, according to GAC data released on Sunday.

The trade surplus for the two months reached $103.25 billion, compared with a deficit of $7.21 billion for the same period last year.

Recovering markets in the EU and the US drove China’s export rise, making “a slack reason” busy, with exports headed for Europe, the GAC said.

Meanwhile, the stay-put policy implemented in Chinese localities during the Spring Festival period meant that factories were able to deliver orders uninterrupted by the long holiday.

Faster recovery

The rise in exports also reflected the country’s faster recovery from the pandemic-induced paralysis.

Electromechanical products and labor-intensive products, from cellphones and cars to textiles and plastics, dominated exports.

Stimulus policies in overseas markets really gave a boost to the so-called stay-at-home economy, said Zhong Wenhui, general manager with Huizhou Densun Musical Instrument Co, a manufacturer of guitars and accessories in South China’s Guangdong Province.

Zhong’s company saw a rise in orders as overseas consumers rushed to the Amazon online marketplace.

The GAC said more Chinese exporters have bullish views for the next two to three months, but uncertainty persists for foreign trade, given the pandemic situation.

A stable recovery on the domestic front helped boost imports, supporting commodities such as iron ore. The yuan-denominated price of the raw material for steel rose 46.7 percent year-on-year in the January-February period.

A continued surge in raw materials that’s expected to persist has eroded the profit margins of Chinese manufacturers, prompting many to increase their product prices, according to industry insiders.

A 3-10 percent hike in steel prices, coupled with skyrocketing freight rates, has eliminated up to 30 percent of the profit margin of China-based manufacturers, said Hong Shibin, deputy executive director of the marketing committee of the China Household Electrical Appliances Association.

 

 

 

 

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