China secured $ 676.4 billion as trade surplus in 2021
Chinese shipping sector also showed strong growth in 2021 and transported goods worth $3.36 trillion
Despite a
trade war with America and other economic difficulties, China has not only achieved
8.1% GDP growth rate during 2021 but also $676.4 billion as trade surplus. It
registered extraordinary growth in export and trade surplus. The export
registered an overall growth rate of 29.9%, which is incredible in the present circumstances.
The strong
growth rate and huge trade surplus shows that China’s manufacturing and
industrial base is strong enough and has the ability to absorb the sudden
shocks like COVID-19. Further, manufacturing and industrial base has sound
fundamentals, which can help China offset the negative impacts of trade wars or
uncalled restrictions on the country.
The
performance of manufacturing and industrial sectors helped offset the negative
impacts of slump in the domestic demand and poor performance of real estate
sector. Domestic demand could not perform according to perceived objectives or
goals due to different reasons.
China is
fighting intense trade war with US, which is also supported by some allies of
US. Trade war has stressed the relations and industrial sectors of both
countries. USA is also running a smear campaign against Chinese companies to
undermine Chinese efforts to invest at global level. Fourth, China was facing
triple pressure including shrinking demand, supply shock and weak expectations.
Chinese shipping
industry has performed exceptionally well in difficult times. The data shows that shipping companies of
China transported goods worth $3.36 trillion. It is a record for China.
It turned the China number one in the world in
the shipping business. It is expected that this trend will continue and get
further improved in coming years. The reason of assumption is that China is
investing heavily on its transportation network under the plan of
Three-Dimensional Transport Network.
The implementation of plan will revolutionise
the supply chain and related business. It means China will make sure that goods
are being transported within one day in the domestic market. The targeted time
to deliver goods in neighbouring countries has been fixed at two days. China
will also strive to deliver goods at the selected destinations in the world
within three days.
China is
fast moving towards achieving the status of manufacturing superpower. Some
experts believe China has already achieved the status of superpower, but China
denies it. China is considering that still it has to cover some distance to
achieve the status. But it is good sign that manufacturing sector is exhibiting
tremendous progress.
Chinese
companies have become strong enough to absorb sudden shock and uncalled trade wars
and propaganda campaigns. It is hoped that it will contribute in enhancing
trust of world business community on China.
Moreover,
countries will start to look at China as a trustworthy and capable partner for
economic growth and development. Thus, China will be able to foster its
cooperation under the initiatives like Belt and Road Initiative, Shanghai
Import Expo etc.
In
conclusion, it can be inferred that the success in economic fields will give
confidence to China that it is moving on the right path to achieve the goals of
China Dream, National Rejuvenation and fully developed country in all aspects.
Khalid Bhatti
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