Positive News Being Circulated by China Over Strong Export Rebound, will Increase Confidence
China’s strange release of trade data in early March was to speculate the positive news that will help to increase the confidence. This move was taken after exports in February showed about 3 years steep slow down, the analyst stated.
As compared to 2018 export during March, this year for the first nine days of March, exports have soared high by 39.9 percent, report as per detailed data that was published over the weekend by the General Administration of Customs.
China economist at Danske Bank, Allan Von Mehren said that the positive news on export would help to increase a small amount of confidence and also support for a moderator recovery. He said, “Over the March data that has been published I believe that it could be due to concern over the economy and negative thinking that is present within companies and households.”
The data that was published on Friday mentioned that the February exports have fallen down by 20.7 percent as compared to previous year March report because the second largest economy of the world is suffering from economic slow-down due to US and China trade war impact.
Ni Yuefeng, China Customs Chief informed Xinhua that China’s export had noticed a growth in February soon after the Lunar New Year Holiday which is a Spring Festival.
Zhong San, the commerce ministry of China stated that within the March weekends there was not only increase in the volume of exports, but there was also increase in the export of quality goods; the hi-tech products are now amounting to 30 percent of overall export of China.
However, few analysts threaten that the partial data of March may not be the best for long term trade trends because of US-China trade war.
In February, China had imported less than 19.9 percent from the United States, down by $7.9 billion from the level of $ 9.2 billion in January. China has exported 14.1 percent lesser goods to the US citing that the trade between the two countries is slowing down.
While in January, the trade figure of China is much better than the expectation because of the Lunar New Year Holiday which began 10 days before this year as compared to last year.
The February data is the biggest decline in export of China ever since 2016.
Analyst Eva Yi of China International Capital Corporation also supported that the growth in export of China is due to the Lunar New Year effect. Chinese New Year started on February 5th this year.