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China exports soar in 2021 amid rise in demand

  • By Al Mayadeen Net
  • Source: Agencies
  • 14 Jan 2022 08:08
2 Min Read

As markets reopened following after Covid lockdown restrictions forced factories to shut down, China's exports witness a sharp increase amid a global rise in demand.

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  • An employee working on an electric vehicle battery production line in Anhui Province, China (Reuters)
    An employee working on an electric vehicle battery production line in Anhui Province, China (Reuters)

China's exports recorded a heavy increase in 2021 as global demand rose following 2020 lockdowns on account of the pandemic. The Chinese overall trade surplus jumped to a record high, a clear shift from the slowdown recorded in 2020.

The Asian giant experienced a relatively quick recovery from the coronavirus last year, allowing factories to operate and feed global appetite for electronics and medical supplies. According to customs data, the recovery led to an approximate 30% spike in exports which pushed annual trade surplus to $676 billion.

On the other hand, imports also increased 30.1% last year.

China's trade surplus with the United States, however, widened 25% last year to $396.6 billion.

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While a deal marking a 'ceasefire' in the trade war between China and the US expired this month, two years after it was signed, authorities have not yet confirmed the next steps.

Former US President Donald Trump had taken steps to narrow the US trade gap with China, signing a partial pact to boost Chinese purchases of goods like soybeans.

China eyes self-sufficiency as tensions grow

A Wall Street Journal article outlined the Chinese effort to bolster the economy in the face of tensions with the United States and its allies.

China's efforts include stockpiling key goods and materials, in addition to planning on boosting domestic production to decrease its reliance on the world.

According to the WSJ, China's economic agencies, including the National Development and Reform Commission and the ministry overseeing agriculture, recently set security as a priority for 2022 - mainly that of supplies, including grains, energy, and raw material.

China is seeking more ways to increase its self-sufficiency, according to the newspaper, in several sectors and not just technology, such as certain foodstuffs for which China has been relying on imports. This is driven by Beijing's wariness of US sanctions as bilateral ties deteriorate over time.

  • China
  • Exports
  • COVID-19
  • lockdown

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