THE country’s exports unexpectedly returned to growth in May despite higher U.S. tariffs, but imports fell in a further sign of weak domestic demand that could prompt policymakers to step up stimulus measures. China’s May exports rose 1.1 percent from a year earlier, blowing past analysts’ expectations, customs data showed. Analysts polled previously had expected May shipments from the world’s largest exporter to have fallen 3.8 percent from a year earlier, after a contraction of 2.7 percent percent in April. Some analysts say Chinese exporters may have rushed out U.S.-bound shipments to avoid new tariffs. While China is not as dependent on exports as in the past, they still account for nearly a fifth of its gross domestic product. Damage from the trade tensions along with a broader softening in global demand will make 2019 the worst year for trade since the financial crisis a decade ago, with only 0.2 percent growth, according to economists at ING. China’s imports dropped 8.5 percent in May, leaving the country with a trade surplus of US$41.65 billion for the month. Analysts had forecast imports would fall 3.8 percent from a year earlier, reversing an expansion of 4 percent in April, which some had suspected was related to changes in company purchasing patterns ahead of a cut in the value-added tax. For the first five months of this year, China’s foreign trade of goods rose 4.1 percent year on year to 12.1 trillion yuan (US$1.76 trillion). Exports increased 6.1 percent year on year to 6.5 trillion yuan during this period, while imports grew 1.8 percent to 5.6 trillion yuan, the data showed. The European Union was China’s largest trading partner in the period, with bilateral trade volume up 11.7 percent from one year earlier to 1.9 trillion yuan, followed by the ASEAN, up 9.4 percent to 1.63 trillion yuan, and the United States, down 9.6 percent to 1.42 trillion yuan. Trade with countries participating in the Belt and Road Initiative totaled 3.49 trillion yuan, up 9 percent year on year, 4.9 percentage points higher than the overall pace, the customs said, adding that the amount accounted for 28.8 percent of China’s total trade volume, up 1.3 percentage points from the same period last year. The country’s private businesses reported faster trade growth in the first five months, with the trade volume increasing 11.1 percent to 5.02 trillion yuan. The amount accounted for 41.4 percent of the total trade volume in the period, up 2.6 percentage points year on year. Exports of mechanical and electrical products, as well as labor-intensive products such as textile and furniture, maintained growth in the period.(SD-Xinhua) |