• Analysis and Studies
• China

INTRO TO THE COUNTRY

China’s GDP increased up to 8.1% in 2021, far exceeding government’s expectations. Once the pandemic recovery started off, trade increased at a very high rate, allowing the country to reach its trade surplus record since 1950.

But weakening growth in the closing months of 2021 suggests that trouble is still on the horizon as the country contends with a deepening real estate crisis, renewed Covid outbreaks and Beijing's strict no-tolerance approach to controlling the virus.

However, growth started to slow in the last months of 2021: the country still has to face troubles related to Covid-19 outbreaks and a worrying real estate crisis. In particular, China’s zero covid approach directs prompt intervention to trace and prevent any Omicron widespread outbreak; the cost of the related measures like locking down entire cities and curbing travels is high for the whole economy.

CHINA'S ECONOMY AND TRADE: LATEST DATA

China’s economy saw a GDP growth of 8.1% in 2021. Trade in general also increased a lot with respect to the previous year. In fact, trade surplus widened to USD 676.4 billion, from USD 524 billion in 2020, as exports surged 29.9% and imports 30.1%. In Dec 21 trade surplus amounted to USD 94.46 billion from USD 75.8 billion in the same month a year earlier.

For comparison, China's trade surplus with the US was 396.58 billion for the whole 2021.