China cashes in on America's coronavirus lockdown
  • Vote Up0Vote Down venynxvenynx
    Posts: 5,288Member
    China’s economy is getting a boost from soaring demand for tech products
    that make it easier and more efficient for Americans to work from home
    during the COVID-19 pandemic, according to economists at one Wall Street
    bank.To get more China economy news, you can visit shine news official website.



    Tech shipments from China soared 37% from a year earlier in the
    April-through-June quarter, contributing 2.4 percentage points to the
    country’s overall export growth of 2%, wrote William Deng and Tao Wang,
    Hong Kong-based economists at investment bank UBS.



    “Export shipments of automatic data processing units and parts, which
    include computers, tablets, monitors and parts, have seen a significant
    upswing since April,” according to Deng and Wang, who said Korea and
    Taiwan are also seeing “significant acceleration.”



    Purchases by the U.S. surged 7.8% even as the total volume of imports into the world's largest economy shrank 20%.



    COVID-19, which originated in Wuhan, China, has infected more than 23.9
    million people worldwide and killed 820,000, with the U.S. faring worse
    than any other country. Shelter-in-place orders aimed at slowing the
    spread of the virus have forced employees around the world to work from
    home, when possible.Because the outbreak originated in China, production
    in the country, and elsewhere in North Asia, was able to resume sooner
    -- and capture market share despite facing tariffs imposed by President
    Trump during the trade war that led up to a partial agreement in
    January.



    Tech demand could remain strong through the end of the year. A survey
    conducted in June by Singapore-based UBS analyst Alicia Chen found 44%
    of respondents plan to purchase a new PC in the next six months, up from
    40% in February.However, UBS warns that some customers may put off
    purchase decisions until economic uncertainty caused by the pandemic
    fades.



    Another headwind for Chinese exports is supply chain disruptions that
    will be caused by Trump’s latest Huawei ban, which will impact the tech
    giant and a number of suppliers beginning on Sept. 15.Huawei is the
    biggest player in the information and technology industry in China,”
    wrote Deng and Wang. “Although in the medium and long term, there is
    scope for other players to step up, significant constraints on Huawei
    will likely result in near-term negative disruptions to the tech
    industry in China and the supply chain.”



    All things considered, the UBS economists say China’s tech shipments
    will remain robust in the third quarter before seeing some possible
    Huawei-related disruptions at the end of the year. The strength of the
    economic recovery will dictate conditions in 2021.



    Exports accounted for more than 18% of China’s gross domestic product
    last year, and are helping the country's economy emerge from its
    COVID-19 recession faster than any other nation.

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Top Posters

Who's Online (0)