China's exports increased in April due to an increase in shipments to Southeast Asian countries, which offset a sharp drop in outbound goods to the United States as prohibitive tariffs went into effect.
US dollar terms of exports grew 8.1% last month year on year, a figure which is far ahead of expectations of 1.9% increase according to a Reuters poll as released by the customs authority in its latest figures on Friday.
On a year-to-year basis, imports declined in April by just 0.2% versus expected 5.9% reduction from economists.
CNBC’s analysis of official customs data indicates an over 21% year on year decrease in China’s shipments to the United States in April, with imports dropping by virtually 14%. Chinese exports to the US rose by 9.1% in March as exporters tried to meet orders or they would face tariffs.
Chinese exports to the United States dropped 2.5% during the first four months of this year, and imports fell 4.7% from the corresponding period last year, official figures show.
In a note, Zhiwei Zhang, president and chief economist at Pinpoint asset management, said that the rise of total exports partly reflected transshipment through third countries and imports signed before the tariff announcement. Zhang expects trade data to gradually weaken in the coming months.
China's exports to the Association of Southeast Asian Nations climbed from 11.6% in March to 20.8% in April over the same period last year. China's exports to Vietnam and Malaysia continued to be the region's top destinations, but shipments from China to Indonesia and Thailand rose 37% and 28% annually, respectively.
China's exports to the EU, meanwhile, rose 8.3% annually, while imports decreased 16.5%. In March, imports decreased by 7.5% while exports rose by 10.3%.
China retaliated with 125% tariffs on US imports after US President Donald Trump placed 145% tariffs on Chinese imports. So far, both sides have attempted to mitigate the economic impact of triple-digit levies by providing exemptions for certain critical products.
Raymond Yeung, chief economist for Greater China at ANZ Bank, said in a note Thursday that the number of container vessels from China to the United States had dropped dramatically by the end of April.
We use cookies to ensure you get the best experience on our website. Read more...