The Chinese economy grew by about 2 percent in 2020 and became one of the only major countries to report such growth amid an economically devastating pandemic.
The Associated Press reports that economic activity in China shrank by nearly 7 percent in the first quarter of last year. However, it appears that the government’s decision to suspend most of its economy quickly has allowed the country to reopen business sooner than others.
However, the AP reported that 2020 was still the worst year for China since the 1990s, when the country faced international isolation following the democratic movement of Tiananmen Square.
Iris Pang, chief economist of ING for the China region, told the AP that ‘it is still too early to conclude that it is a full recovery’, despite the relatively positive growth the country has seen .
“The external demand has not yet fully recovered. This is a big obstacle, ‘Pang added.
The demand for medical supplies such as masks was a boon for Chinese exports, but heavy tariffs levied by President Trump
Donald Trump Iran accuses US businessman of espionage charges: reports DC, state capitals see few issues, heavy security amid concerns over pardon Pardon seekers pay Trump allies tens of thousands to lobby president: NYT MORE exporters negatively affected.
Elected President Biden has indicated that he will keep Trump’s rates once he takes office. In his first interview after winning the presidential election, Biden said Trump’s approach to China was ‘backward’, while also saying he expected the country to play by ‘international’ standards during his administration.
The impact of the pandemic on the world economy has brought China closer to the US in terms of economic production, according to the AP with its total activity of about $ 15.6 trillion, about 75 percent of the $ 20.8 trillion spent by the International Monetary Fund for the US is projected. The US economy is expected to shrink by about 4.3 percent in 2020.