Investing.com – China’s exports grew more than expected in May, boosting its trade surplus much more than expected, thanks to solid industrial output and overseas demand.
Exports up 7.6%, imports up just 1.8%
China’s exports grew 7.6% year-on-year in May, data from the General Administration of Customs showed, much higher than the expected 6% and a sharp rebound from 1.5% in the previous month.
The strong exports suggest that China’s industrial production, a key economic driver, remains stable, while overseas demand has begun to pick up after being sluggish for much of last year.
But continued strong Chinese exports have raised some concerns that China’s largest export destination may restrict imports of Chinese goods due to so-called “oversupply” concerns. Earlier this year, the United States raised import tariffs on some Chinese industries, raising concerns that other developed economies may follow suit.
At the same time, strong exports helped China’s trade surplus expand to $82.62 billion, compared with expectations of $70.5 billion and $7.235 billion in April. But the surge in China’s trade surplus was also driven by weak imports. In May, imports grew by only 1.8% year-on-year, far below the expected 4.2% increase and a sharp slowdown from the 8.4% growth in the previous month.
The weak import data suggests that despite some improvements in some aspects of China’s economy, domestic demand remains generally sluggish. This trend may indicate continued weakness in key areas of China’s economy, especially consumer spending and inflation.
In addition, in RMB terms, export growth was even more rapid, reaching double digits. Exports in May increased by 11.2% year-on-year to RMB 2,147.06 billion, up 5.1% year-on-year from the previous month. Imports increased by 5.2% year-on-year to RMB 1,560.67 billion, up 12.2% year-on-year from the previous month.
ASEAN remains the largest trading partner, and the United States is third
By region, ASEAN remains the largest trading partner in the first five months, with exports to ASEAN of RMB 1.67 trillion, up 13.5%; imports from ASEAN of RMB 1.1 trillion, up 7%.
The EU ranked second, with exports to the EU of RMB 1.45 trillion, down 0.7%; imports from the EU of RMB 774.37 billion, down 2.5%.
The United States ranked third, with exports to the United States of RMB 1.39 trillion, up 3.6%; imports from the United States of RMB 480.45 billion, down 2.6%; and a trade surplus with the United States of RMB 911.18 billion, up 7.2%.
South Korea ranked fourth, with exports to South Korea of RMB 423.8 billion, down 2%; imports from South Korea of RMB 503.63 billion, up 16.8%; and a trade deficit with South Korea of RMB 79.83 billion, compared with a trade surplus of RMB 1.54 billion in the same period last year.
Mechanical and electrical products accounted for nearly 60% of exports, and labor-intensive products accounted for 17%.
In the first five months, China exported RMB 5.87 trillion worth of mechanical and electrical products, up 7.9%, accounting for 59% of the total export value. Among them, automatic data processing equipment and its parts were RMB 554.46 billion, up 9.9%; integrated circuits were RMB 444.73 billion, up 25.5%; automobiles were RMB 329.7 billion, up 23.8%; mobile phones were RMB 329.68 billion, down 2.8%. During the same period, exports of labor-intensive products were RMB 1.69 trillion, up 7.1%, accounting for 17%.
Iron ore imports rose in both volume and price, crude oil remained basically flat but prices rose
In the first five months, China imported 514 million tons of iron ore, an increase of 7%, with an average import price of RMB 860.7 per ton (the same below), up 8.1%; crude oil 229 million tons, a decrease of 0.4%, RMB 4,310.9 per ton, up 6.8%; coal 205 million tons, an increase of 12.6%, RMB 721.9 per ton, down 18.1%; natural gas 54.276 million tons, an increase of 17.4%, RMB 3,504.6 per ton, down 12.6%; soybeans 37.369 million tons, a decrease of 5.4%, RMB 3,759.7 per ton, down 15.5%; refined oil 22.107 million tons, an increase of 20.1%, RMB 4,265.9 per ton, up 5.2%. In addition, 11.976 million tons of primary-shaped plastics were imported, an increase of 1.3%, RMB 10,700 per ton, a decrease of 1.3%; 2.327 million tons of unwrought copper and copper materials were imported, an increase of 8.8%, RMB 64,400 per ton, an increase of 5.9%.
In addition, the import of electromechanical products was RMB 2.68 trillion, an increase of 11.9%. Among them, 213.65 billion integrated circuits, an increase of 14.9%, valued at RMB 1.05 trillion, an increase of 17.1%; 271,000 cars, a decrease of 4.5%, valued at RMB 107.24 billion, a decrease of 13.4%.