China’s exports jump thanks to demand from India, Russia and other emerging markets

China registered a surprise jump in foreign trade at the start of the year, partly because of strong demand from Russia, India and emerging markets in Africa and Latin America.

China registered a surprise jump in foreign trade at the start of the year, partly because of strong demand from Russia, India and emerging markets in Africa and Latin America. Exports from the world’s second largest economy rose by 7.1% in the January-to-February period, beating the 1.9% growth forecast by a Reuters poll of economists. The growth is also significantly higher than the 2.3% gains recorded in December. China typically reports economic data for the first two months of the year together to avoid any distortions caused by the Lunar New Year holiday. Imports also beat expectations, up 3.5% from a year ago, while the trade surplus reached $125.2 billion, about 7% higher than the same period last year. China’s economy is battling a number of headwinds, including weak consumer and investor confidence, high youth unemployment and a long-running real estate crisis. The turnaround in trade — a year ago it was shrinking — is a rare bright spot in a gloomy picture. Apart from the weak base effect, strong demand from emerging markets helped China’s trade surge at the start of the year. Shipments to Africa, Latin America, and India rose by 21%, 20.6%, and 12.8% respectively.