More than a year into the COVID-19 pandemic, the world continues to have concerns. However, there is growing optimism as people gradually receive vaccines and businesses slowly open in hopes of an economic recovery.
China is a country that has seen its economy grow in the first months of 2021, and this represents a positive sign for U.S. corporations already doing business in the country or seriously considering partnerships and alliances in the world’s most populous nation.
Sales of consumer goods climb
Although China’s unemployment rate had a slight uptick of 5.5% in February compared with 5.2% in December, there are many key favors working in China’s favor. And all of them should get the attention of U.S. companies and entrepreneurs.
- During January and February, industrial production in China grew 35.1% from 2020 and 16.9% compared with the first two months of 2019, according to the National Bureau of Statistics of China.
- Retail sales of consumer goods climbed 33.8% in January and February compared with the same time a year ago and 6.4% in the first two months of 2019.
- Two key categories climbed by more than 30%. Investment in fixed assets jumped 35%, while imports and exports climbed 32.2%.
- According to the Organization for Economic Cooperation and Development (OECD), China’s economy is expected to grow 7.8% this year. That represents a significant jump from the 2.3% growth recording in 2020.
- China became the top destination for direct investment by other countries in 2020, marking the first time it surpassed the U.S.
- Another key factor is that China became one of the first countries to start eliminating extra financial support to its economy more than a year after the COVID-19 pandemic. Meanwhile, the U.S. last month passed a $1.9 trillion relief bill and stimulus package.
Onlookers of the global economy should consider China a bright spot. Things are changing as optimism begins to prevail.