China kicks off the year 2024 on a high note as it reports a remarkable 7.1% increase in exports for the first two months, surpassing expectations and fueling optimistic forecasts despite lingering challenges in the global economy.
The surge in exports, reaching US$528 billion, has outpaced predictions, signaling resilience in China's trade sector amidst subdued overseas demand and geopolitical tensions. This robust performance defies earlier projections, with imports also registering a notable uptick of 3.5% compared to the same period last year.
Analysts attribute this favorable outcome to several factors, including a rebound in the global tech cycle and reduced destock pressure. Gary Ng, a senior economist with Natixis Corporate and Investment Banking, highlights the alignment of China's export growth with other tech-savvy markets like Korea, underscoring the positive momentum in the sector.
While concerns linger over weaker imports reflecting challenges in domestic demand, experts anticipate a steady rebound in both exports and imports throughout 2024. The recovery is buoyed by the low base effect from the previous year, marked by significant declines attributed to the impact of the coronavirus pandemic.
Despite facing economic hurdles such as a property market downturn and geopolitical tensions, China's trade performance remains resilient. Notably, exports to key partners like Russia and the Association of Southeast Asian Nations (ASEAN) have shown robust growth, indicating the country's enduring trade relationships.
Premier Li Qiang's commitment to bolstering the trade sector underscores the government's proactive measures to support businesses. Initiatives include increased loan assistance, optimization of cross-border settlement services, and support for international market expansion, signaling a concerted effort to drive trade growth.
Additionally, the rapid expansion of China's "new three" exports – electric vehicles, lithium-ion batteries, and solar panels – presents promising opportunities for further economic advancement. Minister of Commerce Wang Wentao emphasizes China's potential in both import and export markets, underlining the country's proactive approach to global trade engagement.
As China navigates through economic challenges, its resilient trade performance sets a positive tone for the year ahead, offering optimism amidst global uncertainties.
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