China’s trade balance after exports grew to 535 billion US dollars in 2020, lifting its surplus to a five year high. That, despite the coronavirus pandemic and a trade war with the United States. In December, exports surged 18% on the previous year. Supply problems elsewhere helped boosted demand for Chinese goods. China’s robust recovery also drove domestic consumption of foreign products with imports also beating expectations. A report just released by the European Chamber in China implies that the Asian powerhouse has long managed its interdependence with the world economy in a highly strategic and limited manner. What does this mean for foreign companies operating there?
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