China becomes only major world economy to report growth in 2020 | TheHill – The Hill

On Jan 19, 2021

China’s economy increased by about 2 percent in 2020, becoming one of the only major countries to report such a growth in the midst of an economically devastating pandemic.

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

However, the AP reported that 2020 was still the worst year in terms of growth for China since the 1990’s when the country faced international isolation following the Tiananmen Square democracy movement.

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

“External demand has not yet fully recovered. This is a big hurdle,” added Pang.

The demand for medical supplies such as masks has been a boon for Chinese-made exports, but heavy tariffs levied by President TrumpDonald Trump Iran convicts American businessman on spying charge: report DC, state capitals see few issues, heavy security amid protest worries Pardon-seekers have paid Trump allies tens of thousands to lobby president: NYT MORE have negatively impacted exporters.

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

The pandemic’s effect on the global economy brought China closer to the U.S. in terms of economic output, the AP notes with its total activity amounting to roughly $15.6 trillion, about 75 percent of the $20.8 trillion projected for the U.S. by the International Monetary Fund. The U.S. economy is expected to shrink by about 4.3 percent in 2020.

SINGAPORE — Stocks in Asia-Pacific traded mixed on Tuesday as investors await remarks from U.S. President-elect Joe Biden’s nominee for Treasury secretary, Janet Yellen.

South Korea’s Kospi led gains among the region’s major markets as it rose 1.62%, with shares of automaker Hyundai Motor surging more than 5%.

In Japan, the Nikkei 225 jumped 1.41% while the Topix index advanced 0.63%.

Mainland Chinese stocks, on the other hand, slipped: The Shanghai composite dipped 0.18% while the Shenzhen component was fractionally lower.

Shares in Australia saw gains, with the S&P/ASX 200 up 1.24%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.06% higher.

Former Federal Reserve Chair Yellen is set to tell the Senate Finance Committee on Tuesday that the government must “act big” with its next Covid relief package, according to Reuters, which cited a prepared opening statement for her hearing before the committee.

Meanwhile, the Wall Street Journal reported that Yellen is expected to make clear that the U.S. doesn’t seek a weaker dollar.

On the coronavirus front, the head of the World Health Organization warned Monday of a “catastrophic moral failure” due to unfair vaccine rollouts.

Markets stateside were closed on Monday for a holiday.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.672 — higher then levels below 90.4 seen last week.

The Japanese yen was at 103.76 per dollar, still stronger then levels above 104.1 against the greenback seen in the previous trading week. The Australian dollar changed hands at $0.7706, off levels above $0.775 seen late last week.

Oil prices were mixed in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.44% to $54.99 per barrel. U.S. crude futures were below the flatline, trading at $52.35 per barrel.

— This article was updated to accurately reflect the moves of the S&P/ASX 200 in Australia.