China’s economy boosted by improved trade with BRICS nations
China’s trade with other BRICS members hit 1.49 trillion yuan ($209.7 billion) in the first quarter of this year, up 11.3% year-on-year, according to the country’s General Administration of Customs (GAC).
This accounted for 14.7% of the nation’s total foreign trade value for the same period, the customs authorities said.
BRICS is the acronym for the trade bloc that was formed by Brazil, Russia, India, China and South Africa. This year Saudi Arabia, Egypt, the United Arab Emirates, Iran and Ethiopia joined BRICS.
Among BRICS members, China’s exports to and imports from Brazil rose 25.7% and 30.1% respectively year-on-year in the first quarter.
Trade between China and Russia continued to grow during the period, most notably in the energy, automobile and general machinery and equipment, sectors according to the GAC.
Trade between China and India grew 8.5% in the first quarter of the year, representing growth for five consecutive quarters.
China’s trade with South Africa saw strong growth – during the first quarter, China’s exports to the country reached 35.11 billion yuan, while its imports from South Africa stood at 66.46 billion yuan, said the GAC. The country has been China’s largest trading partner in Africa for 14 consecutive years.
Data from the customs authority also showed that China has maintained consistent trade with Saudi Arabia and the United Arab Emirates in the field of energy trade. The two countries were among the top 10 sources of energy products imported into China in the first quarter, the China Daily website reported.
It said: “China also carried out practical cooperation with Egypt and Ethiopia in the field of infrastructure, while in the first quarter, China’s export of contracted projects to the above two countries achieved rapid growth, according to the GAC.
“Meanwhile, Chinese-manufactured goods were popular in Iran, with China’s exported goods purchased by the Iranian market growing 15.2 percent year-on-year in the first quarter, the data shows.”
Lyu Daliang, director of the GAC’s Department of Statistics and Analysis, said that the value of goods trade among BRICS countries accounted for about 20% of the world’s total.
There remains great potential for trade to grow among BRICS nations and the bloc is expected to become an ‘accelerator’ for global economic recovery and trade development, Lyu said.
Improved consumer consumption set to boost GDP growth
China’s economy is set for steady growth during 2024, boosted by a consumption-led recovery, experts are predicting.
Gu Yan, a director at the Xi Jinping Thought on Economy Study Center, said the ‘scarring effect’ caused by the Covid-19 pandemic is fading, as more Chinese consumers are now willing, and have the potential, to spend more.
Gu made the remark at a recent meeting about China’s economic situation held in Beijing. He predicted that consumption will continue to recover this year, given the implementation of the country’s policies to encourage consumption and the strong resilience of the Chinese economy.
His view was supported by the latest data from media group Caixin, which showed that its China General Services Purchasing Managers’ Index (PMI) came in at 52.5 in April compared with 52.7 in March, above the 50-point mark that separates growth from contraction.
Caixin’s composite PMI, which includes both manufacturing and services activities, rose to 52.8 in April from 52.7 the previous month.
Wang Zhe, senior economist at Caixin Insight Group, said the company’s PMI readings are consistent with the year’s strong start, as China’s economic performance in the first quarter beat market expectations, with steady growth in manufacturing and a gradual recovery in consumption.
Mao Kejun, also a director at the Xi Jinping Thought on Economy Study Center, highlighted the robust industrial production in the first quarter, expressing strong confidence about China’s long-term development.
“China’s economy still enjoys favourable conditions and positive factors, including its powerful industrial production capacity and a complete industrial system,” Mao said.
So far, 31 provincial-level regions have released local GDP figures for the first quarter. Sixteen areas outperformed the national growth rate of 5.3% year-on-year in the first quarter, with Jilin, Jiangsu and Hubei provinces expanding by 6.5%, 6.2% and 6.1% respectively.
Xiong Yuan, chief economist at Guosheng Securities, said China’s second-quarter GDP growth rate was likely to be around 6%, adding that the country “needs to take more steps to better implement existing supportive policies and keep stimulus efforts persistent”.
