Latest trade data from China showed that both exports and imports continued to declined in the first two months of the year. Trade with the US and the EU contracted, but trade with Russia was having extraordinary growth.
In the January-February period, China’s exports contracted -6.8% yoy, better than expectation of -9.4% yoy. Imports contracted -10.2% yoy, much worse than expectation of -5.5% yoy. Trade surplus ballooned to USD 116.9B, much larger than expectation of USD 82.5B
The data also revealed that exports to the US decreased by -21.8% yoy while imports dropped -5% yoy. Exports to the EU were also down -12.2% yoy while imports decreased -5.5% yoy. On the other hand, exports to Russia surged 19.8% yoy while imports also jumped by 31.3% yoy
In related news, Chinese Foreign Minister Qin Gang stated the need to strengthen ties with Russia and suggested using “whatever currency that is efficient, safe and credible.”