China’s exports climbed more than expected last month, boosting hopes that the world’s second-biggest economy can maintain its momentum by relying on foreign markets, even in the face of new tariff threats.
Exports rose 7.6 percent in dollar terms from a year earlier, while imports increased 1.8 percent, the customs administration said yesterday. That left a trade surplus of almost US$83 billion for the month.
Economists had forecast that exports would increase by 5.7 percent and imports by 4.3 percent.
Photo: Wu Hao, EPA-EFE
Beijing is relying on sales abroad to offset weak consumer spending at home, where a real-estate slump has led households to tighten their belts. Friday’s numbers indicate that the strategy is paying off so far this year, helped by strong global demand that has provided a tailwind for other Asian trading nations, too. South Korean exports hit the highest in almost two years last month, led by semiconductor sales.
“China’s competitive goods are commanding a bigger share in the global market,” said Bruce Pang (龐溟), chief economist for Greater China at Jones Lang LaSalle.
The momentum is likely to continue, helped by a strong dollar and price cuts by exporters, he said.
Still, Chinese firms face growing obstacles that could make it harder to rely on the export engine for economic growth. In high-tech industries like electric vehicles (EVs), for example, advanced economies including the US and EU are erecting trade barriers.
That has not hit China’s car exports yet. The value of sales abroad last month was the second-highest on record, down only slightly from April’s US$10.7 billion, Friday’s data showed. However, the large European market is about to get harder to access, with new tariffs on Chinese EVs expected next month.
For now, Chinese exporters are “continuing to front-load shipments or re-route exports via a third country” to avoid tariffs, Pang said.
Exports to the US rose by 4.8 percent from a year earlier, the highest in three months, while shipments to countries in the ASEAN jumped 25 percent and those to the EU fell 0.7 percent.
Steel exports posted their second-highest monthly total since 2016 when measured by volume, with 9.6 million tonnes sold last month. Meanwhile, the value of shipments continued to decline.
Data for last month is not available yet, but iron and steel export prices have been falling since late 2022, along with the price of many other goods.
Weak domestic demand has encouraged many Chinese producers to look abroad for markets, including in industries like steel and building equipment that lost customers when the housing bubble burst and construction stalled.
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