China’s Exports Rebound in April, Boosting Economy

Beijing, May 9, 2024 — China’s exports showed resilience in April, surpassing expectations and providing a much-needed boost to the economy. The latest trade data indicates positive momentum in global demand and offers hope for domestic growth amid challenging circumstances.

Key Highlights:

1. Export Rebound: China’s exports increased by 1.5% in dollar terms compared to the same period last year. This reversal came after a decline observed in March, signaling a recovery in overseas sales.

2. Surge in Imports: Imports surged by an impressive 8.4%, catching economists off guard. The unexpected jump in imports was spread across various trade partners, including the US, South Korea, Taiwan, the Netherlands, and Russia.

3. Trade Surplus: The combination of robust exports and increased imports resulted in a trade surplus of $72.4 billion for the month of April.

4. Global Tech Trade Momentum: The surge in imports was largely driven by products such as chips and PC parts. Analysts believe this reflects better global tech trade momentum and is more likely attributable to export-related factors than domestic demand.

5. Positive Impact on Chinese Shares: A key gauge of Chinese shares listed in Hong Kong extended gains after the trade numbers were published, rising 1.6% to snap a two-day losing streak.

6. Weak Domestic Demand: Beijing is relying on strong sales abroad to offset weak consumer spending at home. The ongoing real estate slump has led households to tighten their belts, making exports a critical lifeline for the Chinese economy.

Expert Insights:

Zhiwei Zhang, president and chief economist of Pinpoint Asset Management, commented, “Exports have been the bright spot in China’s economy so far this year. The weak domestic demand led to deflationary pressure, which boosts China’s export competitiveness. This is actually good news for the global economy given the inflation pressure many central banks are fighting against.”

Regional Trends:

• US Demand: Other Asian trading nations also experienced increased overseas sales in April due to strong demand from the US. South Korean exports surged by nearly 14%, while Taiwan reported record shipments to the US.

• Developed Economies: China’s exports to developed economies remained relatively stable. Sales to the US were little changed, while those to the European Union fell. However, shipments to the Asean bloc of southeast Asian nations saw significant growth.

• Steel Exports: The volume of exports of steel products rose by 27% in the year through April, despite falling prices. Countries from Europe to emerging economies like Brazil and Turkey have initiated probes into claims of Chinese dumping of steel.

Conclusion:

China’s trade performance in April underscores the importance of global economic interconnectedness. While challenges persist, the rebound in exports provides hope for a stronger recovery. As Beijing continues to navigate the real estate downturn and household belt-tightening, international trade remains a critical driver of growth.