THE country’s exports unexpectedly shrank in April but imports surprised with their first increase in five months, painting a mixed picture of China’s economy.

Exports fell 2.7 percent from a year earlier, customs data showed yesterday. Economists polled previously had expected growth to slow to 2.3 percent after March’s surprising 14.2 percent jump.

Imports, however, beat expectations with a 4 percent rise year on year, much better than analysts’ forecasts for a 3.6 percent fall and March’s 7.6 percent drop. The gain suggested some improvement in domestic demand as China rolls out more stimulus, such as higher spending on roads, railways and ports.

China had a trade surplus of US$13.84 billion in April, smaller than forecasts of US$35 billion.

Exports of mechanical and electrical products, as well as labor-intensive products such as textile and furniture, maintained growth in the first four months of this year, Xinhua said.

The European Union was China’s largest trading partner during this period, followed by the ASEAN, the United States and Japan.

Trade with Belt and Road countries totaled 2.73 trillion yuan (US$395 billion), up 9.1 percent year on year, more than doubling the overall pace.

China’s private firms reported faster trade growth, expanding at 11 percent year on year to reach 3.9 trillion yuan during this period, official data showed.

After surprisingly strong March economic data from China, likely an early response to government support measures, initial April readings have been more subdued.

Factory surveys for April suggested demand was improving at a much slower rate at home and abroad, adding to the debate over how much more stimulus China needs to generate a sustainable recovery, without risking a rapid jump in debt.

Expectations of further policy support in China have intensified again after the stunning reversal on the trade front this week.

China’s soybean imports in April jumped 10.7 percent from the same period a year earlier to 7.64 million tons, customs data showed yesterday, as shipments delayed from March reached the world’s top oilseed buyer.

That is up from 6.9 million tons a year earlier and up 55 percent from 4.92 million tons in March.

China’s iron ore imports in April fell to the lowest level in 18 months to 80.77 million tons as poor weather in Brazil, the country’s second-biggest supplier, disrupted shipments.

China imported 25.3 million tons of coal in April, up 13.6 percent from 22.28 million tons imported during the same period a year earlier.

Imports of unwrought copper rose 3.6 percent in April from the previous month, as demand gathered momentum at the start of the peak-consumption second quarter.

Aluminum exports, meanwhile, fell 8.8 percent from 546,000 tons in March to 498,000 tons in April. That was up 15.8 percent however, from 430,000 tons in April 2018.

(SD-Agencies)