Chinese April exports beat expectations; surge over 8% annually
China's exports surged 8.1% annually in April, despite ongoing
trade tensions
, even surpassing economists' expectations of just 2%. Imports, meanwhile, dipped slightly by 0.2% year-on-year, though they rose nearly 4% from March.
Officials released these figures on Friday before scheduled discussions between the two economic powerhouses. Analysts suggest this unexpected rise reflects Beijing's strategy to redirect trade towards Southeast Asian nations to counter
US tariffs
reaching 145 percent imposed by President Donald Trump.
Commercial activity between these leading economies has declined following Trump's implementation of tariffs, some reaching 245 percent, whilst China countered with 125 percent duties and additional measures.
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The April year-on-year export growth of 8.1 percent significantly exceeded Bloomberg analysts' predictions of 2.0 percent.
Chinese customs data revealed substantial increases in exports to Thailand, Indonesia and Vietnam, indicating a significant shift in trade patterns.
"The global supply chain is being rerouted in real time," Stephen Innes of SPI Asset Management wrote in a note.
"Vietnam looks set to become China's offshore escape hatch for US-facing goods," he said.
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"The manufacturing juggernaut is diverting flow wherever the tariff pain isn't."
US-bound exports decreased by 17.6 percent month-on-month.
Financial markets have fluctuated since the White House initiated its tariff strategy, aimed at revitalising US manufacturing. Although Trump suspended numerous severe tariffs for 90 days, those affecting China remain active.
Market sentiment improved due to scheduled Geneva discussions between US and Chinese representatives, marking the first diplomatic engagement since the trade disputes began.
US officials express hope for reduced tensions, while Chinese authorities maintain their commitment to protecting national interests.
Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, attributes the strong export figures to "transshipment through other countries."
He also noted possible "trade contracts that were signed before the tariffs were announced."
"I expect trade data will weaken in the next few months."
Import figures, a crucial indicator of Chinese consumer demand, also surpassed expectations with a mere 0.2 percent decline, compared to projected 6.0 percent decrease.
Chinese authorities implemented monetary policy adjustments this week to stimulate domestic activity, including interest rate reductions and lower bank reserve requirements to encourage lending.
The ongoing property sector crisis continues to affect economic growth.
To support the sector, Pan announced a reduction in first-time home purchase rates for loans exceeding five years to 2.6 percent from 2.85 percent.
These measures represent China's most comprehensive economic interventions since September.
However, analysts note insufficient stimulus funding for economic recovery, complicated by trade tensions with Washington.
"Even if the tariffs may be trimmed depending on the outcome of US-China trade talks, the persisting uncertainties will continue to accelerate decoupling structurally," Gary Ng, senior economist for Asia Pacific at Natixis, told AFP.
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