China’s exports surge, economy brightens

China’s exports boomed in the first two months of 2024, according to official data released Thursday.

This comes as a boost for policymakers striving to rejuvenate the country’s economy, the world’s second-largest.

Exports, a crucial driver of economic growth and employment, surged by 7.1% compared to the same period last year. This exceeded analysts’ expectations and was attributed partly to last year’s low base due to Covid restrictions.

Following six months of decline, exports have been on the rise since November. Yet, concerns persist over global economic conditions amid high inflation and interest rates, dampening demand for Chinese goods.

Commerce Minister Wang Wentao, speaking at a major political event in Beijing, acknowledged the recent export rebound and expressed optimism about the overall upward trend. However, he cautioned about a likely decline in March.

China’s trade relations have been strained, particularly with the US, prompting Western companies to diversify their supply chains away from China. Imports also saw a significant increase of 3.5%, contrasting sharply with December’s 0.2% rise.

Despite a record-high trade volume with Russia in 2023, imports from Russia weakened in the first two months of 2024, growing by only 6.7% year-on-year, the slowest since April 2021.

China’s trade surplus for January and February stood at $125.1 billion, significantly higher than December’s $75.3 billion.

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