China’s foreign trade increased significantly in January and February, thanks to strong external demand, a recovering domestic economy and a low base last year due to strict Covid-19 control measures. China’s total goods imports and exports expanded 32.2% year-on-year to CNY5.44 trillion in the first two months of 2021, sustaining the growth momentum recorded in previous months. Exports jumped 50.1% while imports rose 14.5% in yuan terms, according to the General Administration of Customs. In February alone, China’s foreign trade totaled CNY2.42 trillion, climbing 57% from a year ago, the GAC said. “Due to the impact of the coronavirus, overall trade in yuan terms in January-February last year fell 9.7%, and the low base was one of the reasons for the larger increase this year,” Customs said. “But even when compared with normal years, such as the comparable periods in 2018 and 2019, growth in China’s overall trade was around 20%.” Chinese authorities combine trade data for the first two months to compensate for fluctuations due to the Lunar New Year holiday, which falls at different times each year in January or February.

Exports in dollar terms skyrocketed 154.9% in February compared with a year earlier, while imports gained 17.3%, the most since October 2018. In the January-February period, exports jumped 60.6% from a year earlier to USD468.9 billion. The surge in exports was driven by a rebound in foreign demand, Customs said, citing improvements in manufacturing industries in the European Union and the United States, and increased imports of Chinese products thanks to fiscal stimulus measures. Many firms in export-oriented provinces stayed open during the Lunar New Year period this year, and orders that usually only get delivered after the New Year had been delivered normally. In January-February, imports increased 22.2% from a year earlier to USD365.6 billion, above the 15% forecast, partly due to stockpiling of semiconductors and energy products. China posted a trade surplus of USD103.25 billion for the first two months, compared with a USD7.1 billion deficit in the same period last year.

The Association of Southeast Asian Nations (ASEAN) remained China’s largest trading partner during the January-February period, with the combined trade volume rising 32.9% year-on-year. Other major trading partners such as the European Union, the United States and Japan saw trade volumes with China surge 39.8%, 69.6% and 27.4%, respectively. China’s foreign trade with countries along the Belt and Road amounted to CNY1.62 trillion in the first two months, up 23.9% year-on-year, the Shanghai Daily reports. 

Trade between China and the U.S. rose by an impressive 69.6% to CNY716.37 billion in the first two months of 2021, data from China’s National Bureau of Statistics (NBS) showed. Both exports and imports saw major increases. Exports to the U.S. totaled CNY525.39 billion, an increase of 75.1%, while imports from the U.S. stood at CNY190.98 billion, an increase of 56.1%. “I don’t think the new administration is increasing its pressure on the bilateral relationship. To the contrary, we can expect more normalized and more traditional diplomacy,” AmCham China Chairman Greg Gilligan said in response to a question from the Global Times about concerns of a worsening bilateral relationship. The fact that the Biden administration has not removed some of the measures or restrictions put in place by the previous Trump administration doesn’t mean it will be getting tougher, said Gilligan, adding that he will “remain optimistic, and has reasons to do so.” A rising proportion of AmCham member companies said they are optimistic that the relationship will improve in 2021, and 98% stressed that positive bilateral relations are important for their business growth in China.

China’s actual use of foreign direct investment (FDI) surged 31.5% on a yearly basis to CNY176.76 billion in the first two months of this year, the Ministry of Commerce (MOFCOM) said. China’s services sector attracted CNY141.74 billion of FDI during the two-month period, jumping 48.7% on a yearly basis, accounting for 80.2% of the country’s total use of foreign investment. During the first two months of this year, FDI from Belt and Road countries, ASEAN and the EU grew by 26.2%, 28.1% and 31.5%, respectively, on a yearly basis.

Other economic indicators also showed a positive trend in the first two months: industrial output rose 35.1%, retail sales increased 33.8%, also faster than a forecast, while the catering industry report?ed a 68.9% increase in revenue, as the hardest-hit sec?tor continued to recover from the Covid-19 impact. “After removing the base effect, the growth of the main indicators is stable and macro indicators are in a reason?able range,” according to the National Bureau of Statistics (NBS).

This overview is based on reporting by the China Daily, Shanghai Daily and Global Times.