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.

China’s export continued to grow with America ($755.6 billion) and recorded a growth rate of 28.7%. Indian case is even more interesting. We know China and India are engaged at the border. Despite these facts, trade with China reached at highest level of Indian history with the figure of $125.6 billion (Indian import is $97.5 billion and export $28.1 billion). Owing to these factors, China believes that it can face any type of challenges in economic field with confidence and from the point of strength.

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.

 With the completion of this plan, China will further consolidate its position in global supply chain and no doubt shipping companies will also be one of the beneficiaries. The performance of China in these areas indicates new dynamics and realities in global economic, supply chain and manufacturing sector.

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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