China’s voracious consumption of raw materials and finished goods is turning the nation into a veritable import monster.
January import data, to be released on February 10th, is already expected to show 100% year over year growth according to Beijing-based economist Xing Ziqiang.
Exports probably ‘just’ rose 30%, which speaks to the fact that China is indeed shifting to become more of a consumer than producer, finally. Note that in 2009 the country’s trade surplus collapsed 34.2%.
Just realise that Chinese imports aren’t all coming from the U.S. and Europe. Some of the key beneficiaries of increased Chinese consumption are the nations right next door:
“This is very important for regional growth,” said Xing. “It reflects very strong domestic consumption of durable goods like autos as China imports lots of parts from Japan, Korea and Taiwan.”