CHINA extended its impressive trade performance in April, with exports unexpectedly accelerating and import growth hitting a decade high, in a boost to the world’s second-largest economy.

A brisk U.S. economic recovery and stalled factory production in other countries hit by coronavirus have propped up demand for goods made in China, analysts say.

Exports in U.S. dollar terms surged 32.3 percent from a year earlier to US$263.92 billion, according to the General Administration of Customs, beating analysts’ forecast of 24.1 percent and the 30.6 percent growth reported in March.

“China’s export growth again surprised on the upside,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management, adding that two factors — the booming U.S. economy and the COVID-19 crisis in India, causing some orders to shift to China — likely contributed to the strong export growth.

“We expect China’s export growth will stay strong into the second half of this year, as the two factors above will likely continue to favor Chinese manufacturers. Exports will be a key pillar for growth in China this year.”

Imports were also impressive, rising 43.1 percent from a year earlier, the fastest gain since January 2011 and picking up from the 38.1 percent growth in March. It was also slightly faster than the 42.5 percent rise tipped by the recent poll, bolstered by higher commodity prices.

But Zhang Yi, chief economist at Zhonghai Shengrong Capital Management, said it remains to be seen if strong import growth, mainly driven by price inflation, could be sustained as China winds down its fiscal policy support.

Import volumes for some products are starting to level off. China’s iron ore imports fell 3.5 percent in April from a month earlier, while copper imports dropped 12.2 percent on the month. (SD-Agencies)