FX.co ★ China’s trade boom continues supported by strong global demand

At the moment, the Chinese economy is going through a trade boom. Its indicators hit record highs, signaling an acceleration in economic growth. Such a rapid change is attributed to a recovery in both local and global demand. In May, China’s exports jumped by almost 28% year-on-year while imports soared by 51.1%, showing the fastest pace since 2010. In addition, the trade surplus amounted to $45.5 billion. All this is a clear sign of booming trading activity. And as major world economies are emerging from months of lockdowns, this trend is likely to continue. High global consumer spending is supporting overseas demand for Chinese goods. Besides, as countries began to open up, demand for commodities surged, thus making them more expensive. In the first five months of the year, the total value of trade between China and the US rose by 52.3% to reach $279.64 billion. China’s economy expanded by a record 18.3% in the first quarter of 2021 compared to the same quarter last year when it shrank by 6.8%. The economic rebound in China is fueled by several factors that include rising local demand, stability in the labor market, high production capacity, and improved business sentiment.