Prime Highlights:
- China’s exports surged 21.8% in January-February, far exceeding expectations, showing the economy’s resilience.
- Trade surplus reached a record $213.6 billion, supported by strong trade with the EU and ASEAN.
Key Facts:
- Imports rose 19.8%, higher than the expected 6.3% growth.
- Trade with the U.S. fell 16.9%, while tariffs on many goods have eased to around 10%, though some products still face up to 100%.
Background:
China’s trade surplus surged to a record high in the combined January-February period, driven by exports that far exceeded expectations, highlighting the resilience of the world’s second-largest economy despite ongoing trade tensions with the United States.
According to customs data released Wednesday, China’s trade balance reached $213.62 billion, surpassing economists’ forecast of $179.6 billion. Exports rose 21.8% year-on-year, beating the expected 7.1% growth, while imports climbed 19.8%, far above the anticipated 6.3% increase.
Trade with China’s main partners showed different trends. Exports to the European Union rose 19.9% to 998.94 billion yuan, and trade with ASEAN countries grew 20.3% to 1.24 trillion yuan. Meanwhile, trade with the United States dropped 16.9% to 609.71 billion yuan ($88.22 billion), showing the continuing effect of tariffs.
Economists note that part of the strong growth can be attributed to the later Lunar New Year, which boosted year-on-year comparisons. Zhiwei Zhang, chief economist at Pinpoint Asset Management, said the holiday timing “probably cannot fully explain the surprise,” pointing to broader strength in exports.
The data follows China’s annual “Two Sessions” policy meetings, where Premier Li Qiang set a GDP growth target of 4.5% to 5%, the lowest range since the early 1990s. Strong export growth and higher consumer spending, shown by a 1.3% rise in CPI in February, suggest that China is unlikely to introduce new economic stimulus soon.
Consumer prices saw their biggest increase in over three years, boosted by holiday spending. This followed a small 0.2% rise in January and was higher than economists’ 0.8% forecast.
China’s trade continues amid changing U.S. relations. Most tariffs are now around 10%, though some goods still face up to 100%.
