Countries around the world are trying to minimize the damage caused by the pandemic, and it is not an easy task. However, the world’s second-largest economy continues to gain strength, as can be seen from the data. It is worth noting that China’s exports rose at the fastest pace in almost three years in November. This makes sense, as strong demand for goods needed to cope with the coronavirus pandemic helped the country’s economy to reach a record trade surplus.
People should take into account that exports in November rose 21.4% a year earlier. Interestingly, it is the fastest growth since February 2018. Moreover, this result surpassed expectations.
Importantly, imports rose 4.5% year-on-year in November, slower than October’s 4.7% growth.
The firm shipments led to a trade surplus for November of $75.42 billion, the largest since at least 1981. Notably, the country’s exports were supported by strong overseas demand for personal protective equipment (PPE) as well as electronics products for working from home. Moreover, seasonal Christmas demand. As a reminder, millions of people are working from home.
Interestingly, booming sales of bridges, toasters as well as microwaves to households across the world helped to boost China’s manufacturing sector.
Exports and the main findings
Importantly, as can be seen from several early indicators, China’s economic recovery from the coronavirus pandemic gained strength. Manufacturing surveys show new export orders expanding at a faster pace for November. Moreover, that comes despite a sharp appreciation in the yuan in recent months, which some fear could hit exporters.
People should take into account that, some firms reported that strong yuan squeezed profits as well as reduced export orders in November.
Related: President Xi Jinping Wants to Double the Size of Economy
Notably, the strong exports widened the country’s trade surplus with the U.S. to $37.42 billion from $31.37 billion in October. Interestingly, Chinese buyers stepped up purchases of U.S. farm produce, including soybeans, to fulfill China’s pledge in the initial trade deal the country signed with the U.S. in January this year.
In January, Joe Biden will replace Donald Trump. However, there are no instant signs that Biden intends to unwind the punitive tariffs introduced under the Trump administration. Both sides should work harder to solve major issues as soon as possible. The coronavirus pandemic caused a lot of problems and there is no need to create additional problems. Also, other countries should join forces with China and the U.S. to support the global economy.
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