China's export growth holds up well in May, imports rise 26pc y-o-y

Security guards walk in front of containers at the Yangshan Deep Water Port in Shanghai April 24, 2018. — Reuters pic
Security guards walk in front of containers at the Yangshan Deep Water Port in Shanghai April 24, 2018. — Reuters pic

BEIJING, June 8 — China maintained solid export growth of 12.6 per cent in May, slightly slower than in April, but still providing good news for Beijing's policymakers as they deal with tough trade negotiations with Washington.

Imports also rose more than anticipated in May and at the fastest pace since January, with the data coming at a time when China has pledged to its trade partners — including the United States — that steps would be taken to increase imports.

China, the world's largest exporter, has so far escaped any major blow to its foreign trade sector despite rising trade tensions with the United States, which last week warned it would continue to pursue tariffs on Chinese imports.

A third round of talks between the two economic heavyweights concluded in Beijing last weekend with few signs of progress, as China issued a counter-warning that any trade and business deals reached with Washington would be void if the United States implemented tariffs.

The median forecast from a Reuters survey of 32 analysts had pointed to 10 per cent export growth in May, the actual outturn was just a shade below the 12.7 per cent growth posted in April.

Irrespective of chances of a trade war, analysts warn that China's export growth is likely to stall.

“Even if a trade war is avoided, Chinese trade growth is still likely to edge down over the coming year as the global economy loses momentum and headwinds to domestic demand from slower credit growth intensify,” Julian Evans-Pritchard, Senior China Economist at Capital Economics, wrote in a note following the data.

Imports grew 26 per cent in May, the General Administration of Customs said, beating analysts' forecast of 18.7 per cent growth, and compared with a 21.5 per cent rebound in April.

China posted a trade surplus of US$24.92 billion (RM99 billion) for the month. Analysts had forecast the trade surplus would increase to US$31.9 billion in May from US$28.38 billion in April.

Trade surplus with US widens

China's exports to the United States rose 13.6 per cent in the first five months of 2018 from a year earlier, compared with a 13.8 per cent rise in January-April. Its imports from the United States rose 11.9 per cent in the same period.

That widened China's surplus with the United States to US$24.58 billion in May from US$22.15 billion in April, according to Reuters calculations based on customs data released today.

For January-May, the surplus stood at US$104.85 billion, compared with about US$92.9 billion in the same period last year. — Reuters

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