China becomes only major global economy to show growth in 2020

China’s economy grew by around 2% in 2020, becoming one of the only major countries to report such growth amid an economically devastating pandemic.

Economic activity in China fell nearly 7% in the first quarter of last year, reports the Associated Press. However, the government’s decision to quickly shut down most of its economy appears to have allowed the country to reopen businesses earlier than others.

However, the PA reported that 2020 was still the worst growth year for China since the 1990s, when the country faced international isolation as a result of the Tiananmen Square democratic movement.

Iris Pang, ING chief economist for the China region, told the PA that “it is too early to conclude that this is a full recovery”, despite the relatively positive growth that has known the country.

“External demand has not yet fully recovered. It’s a big hurdle, ”added Pang.

Demand for medical supplies such as masks has been a boon for Chinese exports, but high tariffs are being collected by President TrumpDonald Trump Iran condemns US businessman for espionage: DC report, state capitals see few problems, heavy security amid protest concerns Pardon seekers paid tens of thousands of Trump allies to do so pressure on the president: NYT PLUS had a negative impact on exporters.

President-elect Biden has indicated he will keep Trump’s tariffs in place once he takes office. In his first interview after winning the presidential election, Biden said Trump’s approach to China had been “upside down”, while stating that he expected the country to respect ” international standards “during his administration.

The pandemic’s effect on the global economy has brought China closer to the United States in terms of economic output, the PA notes with its total activity amounting to around $ 15.6 trillion, or about 75% of $ 20.8 trillion projected for the United States by the International Monetary Fund. The US economy is expected to shrink by around 4.3% in 2020.