The global demand for Made in China products continues to support Beijing’s trade balance, the increase in exports (+27.9) also in May was double-digit. Record-breaking Chinese imports (+ 51.1%), in turn, were driven by raw materials, necessary to boost the growth of the national economy. The surplus is also increasing (+45.5 billion dollars), an indicator that does not bode well for the negotiations under way with the US that Beijing hopes to restart after the turbulent Trump era.
The Influence of Global Relations
One fact is certain: thanks to trade, the profits of Chinese companies fly, and also those of foreign companies in China which, in turn, for better or for worse, have found themselves sharing the fate of the country.
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For European ones, in particular, 2020, the year of the pandemic, was an excellent year, as revealed by the Business Confidence Survey 2021 prepared by Roland Berger for the European Chamber of Commerce in China. Companies have followed, step by step, the Chinese recovery, obtaining excellent results.
Sentiment is positive, 68% of companies are optimistic about the future, about 20% more than last year. One in four recorded an EBIT up to the pre-Covid 19 period.
China pivotal market for companies
China is an important cornerstone for many European companies, with 51% reporting a flattering + 13% margin in the country compared to 2019. Therefore, these foreign realities have benefited from the wind of recovery, despite having shared less positives linked to the Chinese management of the pandemic.