Export Recovery

China's exports have rapidly recovered from the second half of 2020 and have registered a 3.6% y/y increase for the year after the pandemic impacted global demand and logistics and transportation. The recovery was led by growing orders in medical materials, equipment as well as textile and fabric products, according to data from General Customs released on Thursday.

Here are some takeaways from the release:

• Exports increased for the seventh straight month by 18.1% y/y to $281.93 billion in December, slowing down from the previous 33-month high of 21.1% y/y growth due a high base effect. The strong rise helped exports grow 3.6% y/y for the year 2020.
• Exports to ASEAN countries rose 6.7% y/y, those to the EU and the US rose 6.7% y/y and 7.9% y/y respectively in 2020, while those to Japan fell 0.4% y/y.
• Imports rose 6.6% y/y to $203.75 billion in December, accelerating from last month's 4.5% increase. Imports narrowed the decline to 1.1% y/y at the end of 2020.
• Imports from all big partners edged up. Imports from the U.S. grew 9.8% y/y, from ASEAN countries by 6.6% y/y, from the EU by 2.3% y/y and from Japan by 1.8% y/y..
• The trade surplus expanded to $78.2 billion in December from $75.4 billion posted in November, bringing the total balance to $535.03 billion for 2020.