China’s economy increased by about 2% in 2020, becoming one of the only major countries to report such growth in the midst of a devastating economic pandemic.
Economic activity in China shrank by about 7 percent in the first quarter of last year, the Associated Press Reports. However, the government’s decision to shut down most of its economy quickly appears to have allowed the country to reopen businesses earlier than others.
However, the Associated Press reported that 2020 was still the worst growth year for China since the 1990s when the country faced international isolation in the wake of the Tiananmen Square Democracy Movement.
“It’s too early to conclude that this is a full recovery,” Iris Pang, chief economist at ING for the China region, told the AP, despite the relatively positive growth the country has experienced.
External demand has not fully recovered yet. “This is a big obstacle,” Pang added.
Demand for medical supplies like masks has been a boon for Chinese-made exports, but heavy tariffs have imposed them President TrumpDONALD TRUMP: Iran Condemns American Businessman for Espionage: Report In the capital, state capitals see few problems and tight security amid fears of protest, amnesty seekers have paid Trump allies tens of thousands to pressure the president: NYT MORE It negatively affected the exporters.
President-elect Biden has indicated that he will keep Trump’s definitions in effect once he takes office. In his first interview after winning the presidential election, Biden said that Trump’s approach to China was “reactionary,” while also saying that he expected the country to play by “international standards” during his administration.
The impact of the epidemic on the global economy has brought China closer to the United States in terms of economic output, and the Associated Press notes that its total activity amounts to nearly $ 15.6 trillion, or about 75 percent of the $ 20.8 trillion projected for the United States by the International Monetary Fund. . The US economy is expected to contract by about 4.3% in 2020.