China’s exports unexpectedly returned to growth in May despite higher US tariffs, but imports fell the most in nearly three years in a further sign of weak domestic demand that could prompt Beijing to step up stimulus measures.
CHINA’S EXPORTS RECOVER IN MAY
Some analysts suspected Chinese exporters may have rushed out shipments to the US to avoid new tariffs on $300 billion of goods that Donald Trump is threatening to impose in a rapidly escalating trade dispute. But Monday’s better-than-expected export data is unlikely to ease fears that a longer and costlier US-China trade war may no longer be avoidable, pushing the global economy towards recession.
China’s May exports rose 1.1 percent from a year earlier, compared with market expectations for a modest decline, customs data showed.
While China is not as dependent on exports as in the past, they still account for nearly a fifth of its gross domestic product. Trade tensions between Washington and Beijing escalated sharply last month after the Trump administration accused China of having “reneged” on promises to make structural changes to its economic practices.