China’s November balance of trade to be released
The Chinese General Administration of Customs is due to release November’s balance of trade figures today.
The balance of trade is a key indicator representing a country’s economic strength. In October, China had a trade balance of $58.4 billion, and this month’s exports are expected to be 12% higher than the same period last year, buoyed by strong demand in foreign markets whose factories have scaled back due to the pandemic. China’s imports are rising as well since domestic manufacturers need foreign raw materials for production.
As the Biden administration prepares to take power, Chinese businesses are waiting with bated breath for incoming policy changes. Just last week, Beijing passed an export control law giving itself wide-ranging trade sanction powers to gain leverage in this next stage of Sino-US relations.
Although Beijing is not fully satisfying its Phase One import agreement with Washington, imports will rise as Beijing places large orders of agricultural products and basic goods from Washington, New Delhi and other strategic rivals. As relations with the incoming US administration remain uncertain and Chinese trade policies continue to remain vague, readers should expect continued uncertainty in trans-Pacific markets for the near future.
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