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China market update
Story Date: 2/1/2021
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Source: Danny Ding, NCDA&CS, 1/29/21
The statistic shows that China imported US $25.11 billions of agricultural products from the U.S., a year-on-year increase of 66.9%. It didn’t achieve the goal set by the phase-one agreement although the number is already a record high in the history. In addition to the difficulties created by the pandemic, I was a little disappointed that China didn’t approve more trade protocols for ag products, i.e. sweet potato.
RMB becomes increasingly stronger in the past ten months and it will continue in 2021. It benefits both exporters and Chinese importers, and I therefore remain optimistic about NC exports to China in 2021.
The second-wave of COVID-19 keeps developing in China and Shanghai is on the list this week too although the number of cases is very small. Two districts in downtown Beijing tested everyone including myself and only identified one confirmed case last weekend. What I found interesting is that they use one testing reagent for each group of five people. And they will ask those five people to be tested again individually if the first test shows positive. A good way to save costs especially if there is shortage of testing reagent supplies.
Tens of millions of people will stay in the city where they work for the coming Chinese New Year holiday, because they will face at least 14-day compulsory quarantine when traveling back to hometown and the holiday is only one week long. Beijing municipal government plans to provide 20G cell phone data for everyone in town and it will certainly bring more people online and spending more time doing online shopping, social media visits and movies and games, etc. I guess that we will see a higher number of consumer expenses on imported food, drink and snacks products after the holiday.
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