Clear Economic Recovery Despite Base Effects from COVID-19 Outbreak in January Last Year
Imports Up 28% Year-on-Year, Trade Surplus at $116.35 Billion
[Asia Economy Beijing=Special Correspondent Jo Young-shin] China's exports in the first quarter surged nearly 50% compared to the same period last year. While the base effect played a role due to the sharp economic contraction caused by the COVID-19 outbreak in January last year, the dominant assessment is that the Chinese economy is gradually recovering.
The General Administration of Customs of China announced that the total export value in the first quarter reached $709.98 billion (799.0825 trillion KRW), marking a 49.0% increase compared to the same period last year. Exports in March alone amounted to $241.13 billion, up 30.6% year-on-year.
Similar to last year, China's exports were led by COVID-19 prevention supplies and electronic products. As the first country where COVID-19 broke out, China is benefiting from the COVID-19 special demand.
China's imports in the first quarter totaled $593.62 billion, a 28.0% increase compared to the same period last year. Imports in March reached $227.34 billion, up 38.1% year-on-year. The import growth rate in March is the highest in over four years since February 2017. The increase in imports also indicates that the domestic market is recovering.
Accordingly, China's trade surplus in the first quarter of this year was recorded at $116.35 billion.
Meanwhile, exports of rare earth elements, known as the rice of the 4th Industrial Revolution including semiconductors, fell 12.9% year-on-year to 4,837 tons last month. From January to February, China's rare earth exports surged 28.8% year-on-year to 7,068 tons, but the export growth trend weakened in March.
China's rare earth exports are expected to decline further in April. The Chinese government dispatched an ecological environment protection inspection team to Ganzhou, Jiangxi Province, the largest rare earth production area, citing environmental pollution around the Yangtze River. About half of the mining companies have halted production until the end of April.
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