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Good morning! It's a warmer & less cold day in Hong Kong 
. I can sense that people are fed up with lockdowns, esp in the West. In HK, it's 1 year for us now living on the island. Anyway, who's the biggest winner of Covid? China
Exports +18.1%YoY & demand up across the world.
. I can sense that people are fed up with lockdowns, esp in the West. In HK, it's 1 year for us now living on the island. Anyway, who's the biggest winner of Covid? ChinaExports +18.1%YoY & demand up across the world.
Those are details of %YoY growth (2020 December vs 2019 December) and so relative to before Covid China is exporting double digits higher in aggregate in USD & demand is even more in some than others.
Manufacturing > Services as services got locked down!!!
Manufacturing > Services as services got locked down!!!
Loss of service income is IRRECOVERABLE. Can't store haircuts/nails/spa/trips that u didn't take. Hence in developed markets, esp the US, talk of fiscal stimulus/unemployment support/etc is gaining traction again as suppression measures are strong.
Manufacturing strong though.
Manufacturing strong though.
China trade balance blew up even as imports grew +6.5%, much less than exports of +18.1% & let's look at where China bought more:
USA, Taiwan, Japan, ASEAN, EU.
Where does it not? Well, Canada, Australia & UK. All economies that it has some sort of beef with.
USA, Taiwan, Japan, ASEAN, EU.
Where does it not? Well, Canada, Australia & UK. All economies that it has some sort of beef with.
Look at this import from EM esp BRICS (only India is up) so down. Importing less commodity as imports from the US up?
China imports more from the USA despite escalating tensions while less from other commodity producers. Interesting right?
China imports more from the USA despite escalating tensions while less from other commodity producers. Interesting right?
Meaning, China structural comparative competitiveness is people + capital & so manufacturing. Hence, it needs to import food & raw commodities.
Has got to import from somewhere in global markets & imports from the US up as it scales back elsewhere. Look at that trade surplus.
Has got to import from somewhere in global markets & imports from the US up as it scales back elsewhere. Look at that trade surplus.
