China's exports grow 7.6% in May, beating expectations despite trade tensions
HONG
KONG, June 7 (AP/UNB) - China's exports in May grew at their fastest pace in
more than a year despite trade tensions, though imports fell short of analyst
expectations, according to customs data released Friday.
Exports jumped 7.6% in
May from the same month last year to $302.35 billion, rising at the fastest
pace since April 2023. Imports rose by 1.8% to $219.73 billion, missing
estimates of about 4% growth.
The uptick in exports is
also partly due to a lower base in the same period last year, when exports
declined 7.5%.
In comparison, exports
grew by 1.5% in April compared to the same period last year while April imports
rose by 8.4%.
The strong exports
caused China's trade surplus to widen to $82.62 billion, up from April's $72.35
billion.
The growth in exports
comes as China faces escalated trade tensions with the U.S. and Europe. The
U.S. is ramping up tariffs on Chinese-made electric cars while Europe is
considering levying similar tariffs.
"Foreign tariffs
are unlikely to immediately threaten exports; if anything, they may boost
exports at the margin as firms speed up shipments to front-run the
duties." said Zichun Huang of Capital Economics in a note.
Huang also said that
exports would be supported by a weaker real effective exchange rate.
"Import volumes
were little changed last month, but they will probably rise soon, with
increased government spending supporting the import-intensive construction
sector," she said.
Factory activity in
China slowed more than expected in May, according to an official survey
released last week.
The manufacturing
purchasing managers index from the China Federation of Logistics and Purchasing
fell to 49.5 from 50.4 in April on a scale up to 100 where 50 marks the break
between expansion and contraction.
China has struggled to
bounce back after the COVID-19 pandemic, as it grapples with weaker demand
globally after the U.S. Federal Reserve and other central banks raised interest
rates to counter inflation. A slump in China's property sector also is weighing
on growth.
China has set a target
of around 5% for economic growth this year, an ambition that will require more
policy support, economists say.