China’s Exports Surge in Year-End Rush as Pandemic Fuels Demand - Bloomberg
▻https://www.bloomberg.com/news/articles/2020-12-07/china-s-exports-rise-most-since-2018-as-year-end-demand-surges
Qilai Shen/Bloomberg
• Exports of medical equipment, electronics remain strong
• Trade surplus with U.S. reached new monthly record in November
China’s exports jumped in November by the most since early 2018, pushing its trade surplus to a monthly record high and underlining how global demand for pandemic-related goods is supporting a growth rebound in the world’s second-largest economy.
Chinese companies shipped $268 billion in goods in November, the most for any single month and more than 21% higher than the same month last year. Import growth eased to 4.5%, leaving a trade surplus of $75.4 billion — the largest on record in data going back to 1990.
“The export boom is one of the biggest economic surprises this year regarding China’s outlook,” with the country benefiting from effective containment of the virus and strong Christmas orders, said Zhou Hao, an economist at Commerzbank AG in Singapore.
Strengthened by the seasonal surge ahead of the year-end holidays, the figures illustrate how the pandemic has complimented China’s manufacturing strengths, as consumers worldwide reduced spending on services due to coronavirus closures. Combined with a pick-up in China’s domestic consumption and investment, they also suggest that the country’s economic rebound remained on track in November.
“Importers from various locations outside China worried that their locations would be under lockdown during Thanksgiving and Christmas, and therefore request urgent deliveries from China’s factories,” said Iris Pang, Greater China chief economist at ING Groep NV in Hong Kong.
Virus Restrictions
Global demand had started recovering before a resurgence in virus cases in some of China’s biggest export markets, including the U.S. and Europe — a development which could further fuel demand for Chinese-made personal protective gear and work-from-home devices.
Exports of medical equipment in the January-November period jumped 42.5% in dollar terms from a year ago, while shipments of electronics in November were up 25% compared to the same month last year.
“Demand for pandemic-related and electronics goods was pretty much unaffected by the newly imposed social-distancing measures, which affect services more than goods trade,” said Michelle Lam, Greater China economist at Societe Generale SA in Hong Kong.