China has never ben honest about their data. Why anyone believes anything out of the CCP at this point, is a mystery. But, we go with what is given, so always be aware that any economic stories out of China are pure fantasy, and written by the communists in control. With that said…
China’s exports increased for the second consecutive month in May, providing some relief to the world’s second-largest economy, which continues to grapple with a prolonged property crisis and weak domestic demand.
According to data from the country’s customs office, the total value of exports rose by 7.6% year-on-year in May, up from a 1.5% increase in April. This growth outpaced the 6.0% rise predicted by a Reuters poll of economists, partly due to a low base effect from the previous year.
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In contrast, imports grew by only 1.8% year-on-year in May, following an 8.4% surge in April. This figure fell short of the 4.2% gain forecasted by Reuters, indicating softer-than-expected domestic demand.
The influx of inexpensive Chinese goods into global markets has sparked concerns among China’s trading partners, leading to various countermeasures. Last month, the U.S. increased tariffs on several Chinese products, including electric vehicles, solar panels, semiconductors, and specific steel and aluminum items. The European Union is also set to impose new duties on Chinese electric vehicles shortly. In Latin America, Mexico, Chile, and Brazil have raised tariffs on Chinese steel exports.
Despite these challenges, China’s manufacturing sector faced unexpected contraction in May. The new export orders component of the official manufacturing purchasing managers’ index dropped to 48.3, falling below the 50-point mark that separates expansion from contraction.
China’s exports grow 7.6% in May, beating expectations despite trade tensions https://t.co/OikL7JsYz5
— The Associated Press (@AP) June 7, 2024
However, the rise in export values year-on-year marked the fastest pace since April 2023. According to Zichun Huang, China economist at Capital Economics, “Foreign tariffs are unlikely to immediately threaten exports. If anything, they may boost exports at the margin as firms expedite shipments to avoid the new duties. Even when tariffs are enforced, their impact could be lessened through trade rerouting and adjustments in the exchange rate.” Huang anticipates double-digit growth in export volumes this year, supporting an overall economic growth of 5.5%. As a result, the firm has recently revised its GDP growth forecast for China this year from 5.0% to 5.5%.
Huang also noted that China’s imports are expected to rise soon, driven by increased government spending, particularly in the import-intensive construction sector.
May’s robust export performance was fueled by high-tech products, with the value of integrated circuits surging by 28.5% year-on-year. Car exports remained strong at $10.5 billion, slightly below April’s figures, but the quantity increased by 13,000 units, suggesting a decline in average prices.
China’s exports jumped more than expected in May, boosting the growth outlook in the world’s second-biggest economy https://t.co/sVM0kQMdGS
— Bloomberg Economics (@economics) June 7, 2024
Exports to Brazil and the Association of Southeast Asian Nations (ASEAN) led the growth, soaring by 48.9% and 22.5%, respectively. However, imports from Brazil dropped by 17.7% in May after a 20.7% increase in April. The decline in imports was also reflected in a 13.6% decrease in the value of agricultural products entering China. Imports from South Korea and Taiwan saw significant growth, whereas imports from the U.S. decreased by 7.8%.
China’s trade surplus rose to $82.62 billion in May, up from $72.35 billion in April. During the first five months of 2024, Chinese exports increased by 2.7%, while imports rose by 2.9%. So…does anyone believe these stats? Knowing that the CCP always has an agenda. I take all facts and figures from them as pure fantasy.
Major Points:
- China’s exports rose 7.6% year-on-year in May, up from a 1.5% increase in April, driven by high-tech products and car exports.
- Imports grew by 1.8% in May, falling short of expectations and indicating weaker domestic demand.
- U.S. and EU have increased tariffs on various Chinese goods, while Latin American countries have raised tariffs on Chinese steel.
- Despite manufacturing contraction, export values increased, with projections of double-digit growth in export volumes supporting a 5.5% GDP growth forecast for 2024.
- China’s trade surplus expanded to $82.62 billion in May, with notable export growth to Brazil and ASEAN, although imports from the U.S. and Brazil declined.
RM Tomi – Reprinted with permission of Whatfinger News
