China’s trade jumps up as economy recovers from coronavirus slump

The foreign trades China rises as economy recovers from coronavirus slump all over the world. China’s imports of U.S. goods rose 10.6% in June over a year ago and its global trade also increased in a fresh sign the world’s second-largest economy is gradually recovering from the coronavirus pandemic.

Daily Current Affairs Quiz 2020

Key-Points

China’s global imports rose 3% to $167.2 billion, rebounding from May’s 3.3% decline. Exports edged up 0.4% to $213.6 billion, an improvement over the previous month’s 16.7% contraction. The country’s global trade surplus was $46.4 billion.

Imports of American goods increased to $10.4 billion despite higher tariffs that were imposed in a fight with Washington over trade and technology. Exports to the United States gained 1% to $39.8 billion.

China, where the pandemic began in December, was the first major economy to shut down to fight the virus and the first to begin the struggle to restore normal business activity after the ruling Communist Party declared victory over the outbreak in March.

Chinese factory activity is recovering but consumers, uneasy over possible job losses, are reluctant to commit to big purchases.

Forecasters warn exports are likely to weaken as global demand for surgical masks and other medical supplies declines and U.S. and European retailers cancel orders.

The Chinese economy shrank by 6.8% in the first quarter, its worst performance since at least the mid-1960s. The ruling party skipped announcing an economic growth target for this year but private sector forecasts range from low single digits to a small contraction.