China April exports bounce back more than expected despite US trade brawl
BEIJING: China’s exports rebounded more strongly than expected in April after a surprise drop the previous month, suggesting global demand remains relatively resilient and providing a cushion to the economy amid a heated trade dispute with the United States.
Imports in April also grew more robustly than expected, signalling China’s domestic demand is holding up well, good news for policymakers looking to soften the blow from any trade shocks.
Some analysts, however, warned the strong April showing was mostly seasonal and that the global export recovery may have already topped out.
“Shipments still look healthy but today’s data does point to a softening in external demand recently,” Capital Economics senior China economist Julian Evans-Pritchard wrote in a note.
“The backdrop of the ongoing trade negotiations between China and the US is one in which global growth has already peaked and China’s export performance is waning as a result.”
The world’s two largest economies have threatened each other with tariffs on tens of billions of dollars’ worth of exports in recent months, leading to worries that Washington and Beijing may plunge into a full-scale trade war that could damage global growth and roil financial markets.
China’s April exports rose 12.9 per cent from a year earlier, beating analysts’ forecasts for a 6.3 per cent increase and snapping back from a 2.7 per cent drop in March that economists believe was heavily distorted by seasonal factors.
The heated row with Washington and threats of tit-for-tat punitive measures on trade and investment have added to existing concerns about an economic slowdown in China this year as Beijing continues its campaign to reduce risks to the country’s financial system.
High-level discussions between the two sides in Beijing last week appeared to make little substantive progress in defusing trade tensions apart from an agreement to hold more talks.
China’s top economic official will visit Washington next week to resume trade talks with the Trump administration, the White House said on Monday.
A Reuters report citing sources said China had offered to buy more US goods and lower tariffs on some goods, including cars.
But the Trump administration has drawn a hard line, demanding a US$200 billion cut in the Chinese trade surplus with the United States by 2020, sharply lower tariffs and advanced technology subsidies, according to people familiar with the top-level US-China talks last Friday.