China faces constraints for further economic development

China’s lopsided trade balance – exporting three containers for every one imported recently – and delays in containers returning to China due to the pandemic overseas, have created severe shipping bottlenecks, now starting to pinch exports.

And an official gauge of factory raw materials costs reached the highest level since 2017 in November.

Despite the red-hot demand, Liang, of Trinx Bikes, said profits are being squeezed. “Some of our orders are already seeing some losses,” he said.

But for policymakers, the export boom has been a welcome one in a tough year. The resilience of China’s export sector, which employs some 180 million people, has reduced the need for massive stimulus to revive the economy this year, said analysts.

China hit 122 percent of its annual job creation target by end-November. But manufacturers don’t expect this boom to last as other economies ramp up production.

Liang said,”It started with the pandemic, so it will end with the vaccine rollout.”

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