China’s exports have defied expectations with a robust 7.6% growth in May, suggesting a resilient global demand for Chinese goods amid an economic recovery. The surge in exports is particularly notable in trade with ASEAN countries, which saw a 22.5% increase, while trade with traditional partners such as the US and EU showed a decline. This growth comes as a relief to the Chinese economy, which has been grappling with a protracted property crisis and a complex external trade environment, including the imposition of tariffs by Western countries and ongoing trade tensions that have dampened investor and consumer confidence. The property sector crisis remains a significant drag on the economy, with the National Bureau of Statistics reporting a decline in new and export orders and high youth unemployment, weak domestic consumption, and local government debt posing additional challenges despite the government’s target of around 5% economic growth for the year. China’s trade surplus widened to $82.62 billion in May, the largest since February, further indicating sustained global demand. However, the slower growth in imports at 1.8% raises concerns about the fragility of domestic consumption. The overall foreign trade volume rose by 6.3% in the first five months of 2024, with exports up by 16.6% and imports by 4.6%, reflecting the complex dynamics of China’s trade and economic health.
Key points
- China’s exports rose by 7.6% in May, beating forecasts and indicating strong global demand for Chinese goods.
- Trade with ASEAN countries significantly increased, while exports to the US and EU fell.
- China’s trade surplus widened to $82.62 billion in May, the largest since February.
- Despite export growth, domestic challenges such as the property sector crisis and high youth unemployment continue to weigh on the economy.
Contradictions
- While most sources report a 7.6% increase in exports for May, Shorouk News mentions a 6.7% increase, which differs from the commonly reported figure.
