1/6
China's exports were up 20.9% in December, more than most analysts expected, while its imports were up by 19.5%, which was much less than most analysts expected.
english.news.cn/20220114/54190…
China's exports were up 20.9% in December, more than most analysts expected, while its imports were up by 19.5%, which was much less than most analysts expected.
english.news.cn/20220114/54190…
2/6
The result: a whopping $94.5 billion trade surplus, the biggest monthly trade surplus in Chinese history and perhaps the biggest ever seen anywhere. Equal to 7% of Chinese GDP for the month, it implies a deficit for the rest of the world of nearly 1.5% of its collective GDP.
The result: a whopping $94.5 billion trade surplus, the biggest monthly trade surplus in Chinese history and perhaps the biggest ever seen anywhere. Equal to 7% of Chinese GDP for the month, it implies a deficit for the rest of the world of nearly 1.5% of its collective GDP.
3/6
Once again analysts have been surprised (astonished, more like it) by the size of China's trade surplus, mainly because they insist on seeing trade incrementally rather than as a systemic outcome.
Once again analysts have been surprised (astonished, more like it) by the size of China's trade surplus, mainly because they insist on seeing trade incrementally rather than as a systemic outcome.
4/6
Because the trade surplus is a function of the excess of savings over investment, China's lagging household income, which resulted in lagging consumption, meant that any slowdown in debt or investment must be balanced by an increase in the trade surplus.
Because the trade surplus is a function of the excess of savings over investment, China's lagging household income, which resulted in lagging consumption, meant that any slowdown in debt or investment must be balanced by an increase in the trade surplus.
5/6
That's just what happened. We'll continue to see large trade surpluses as China struggles to revive investment in property and infrastructure. Meanwhile it should be clear that there has been no meaningful rebalancing of income this year.
That's just what happened. We'll continue to see large trade surpluses as China struggles to revive investment in property and infrastructure. Meanwhile it should be clear that there has been no meaningful rebalancing of income this year.
6/6
Exports for the whole year rose 21.2%, while imports rose 21.5%, barely keeping pace, to leave the country with a record trade surplus of $676.4 billion (nearly 4% of China's GDP), which some are saying is the highest annual surplus ever recorded for any country.
Exports for the whole year rose 21.2%, while imports rose 21.5%, barely keeping pace, to leave the country with a record trade surplus of $676.4 billion (nearly 4% of China's GDP), which some are saying is the highest annual surplus ever recorded for any country.
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