The Chinese economy showed its resilience as it beat all expectations to post an export growth of 14.8 percent in March despite a decline in the two largest global markets the United States and the European Union.
China is facing trade sanctions of various natures in the US and the EU for over three years, still, its economy caved in only after several lockdowns during Covid-19. That was in line with global trends. But when its growth was almost a 50-year low of 3 percent last year many experts predicted a permanent decline. After covid-19 restrictions were lifted the growth has started accelerating and the Chinese expect to post 5 percent growth this year. Surprisingly it’s textile and clothing exports increased last year as well due to diversions to markets outside the US and the EU. Most textile and apparel countries posted a decline after the pandemic and the Russian-Ukraine war.
In March Chinese exports amounted to $315.6 billion posting a growth of 14.6 percent. During January and February, the exports suffered a decline of 6.8 percent. Chinese imports declined by a paltry 1.4 percent in March against a decline of 10.2 percent in January and February 2023. Its trade surplus increased to $88.2 billion.
Exports to the United States and the European Union declined more because of higher inflation in these two regions than the higher tariff on Chinese goods. But the decline was compensated by robust exports to Canada, Russia, Indonesia, and other Asian markets. China’s trade with India now is larger than its trade with the US.
China imported 40 percent more from Russia in March, mostly oil and gas. It is the largest consumer of energy around the globe. The discounted energy supplies from Russia were welcomed by the Chinese. Exports to Russia reached $9 billion as well.
China can buy Russian oil and gas without triggering Western sanctions. That helps to buoy the Kremlin’s foreign revenue, but President Joe Biden has warned Beijing against helping Moscow’s military.
China posts almost 15 percent growth in exports in March
