China’s exports rebound in May

Exports in dollar terms grew 16.9% in May from a year earlier, customs data showed yesterday, accelerating from April’s 3.9% increase and climbing well above an 8% gain projected by economists.

BEIJING: China’s exports grew at a faster pace in May than the previous month as Covid disruptions to production and logistics eased.

Exports in dollar terms grew 16.9% in May from a year earlier, customs data showed yesterday, accelerating from April’s 3.9% increase and climbing well above an 8% gain projected by economists.

Imports rose 4.1% after staying unchanged in the previous month.

Economists had expected a 2.8% increase.

The trade surplus in the month widened to US$78.8bil (RM346bil) from US$51.12bil (RM224bil), with exports worth US$308.25bil (RM1.4 trillion), the most in four months.

The data reflects an improvement in China’s trade following an easing of virus outbreaks and a partial recovery in operations at factories and the world’s largest port in Shanghai.

Even so, logistics remained backed up, which may have kept shipments from growing even faster.

The global outlook is darkening for China’s exporters.

While demand remained solid in May – as reflected by South Korean exports, a barometer of global trade – exporters are reporting a drop in orders as consumers around the world shift their spending away from goods to services.

Soaring inflation in the United States and Europe means households are tightening their belts.

Wang Shouwen, vice-commerce minister, also warned of a number of uncertainties for trade.

At a briefing on Wednesday, he highlighted a fragile global economic recovery, high inflation internationally, and logistics bottlenecks within China as potential threats.

Even so, Wang said he was confident that China could keep foreign trade growth stable.

Also on Wednesday, Premier Li Keqiang led a State Council meeting calling for further support of foreign trade and investment, saying it matters to overall growth and employment, according to a report in Xinhua.

He urged improvements in the efficiency of port loading and unloading, and transshipment and customs clearance.

He also called on maintaining the stability of supply chains, and resolving difficulties so that foreign businesses can resume operations. — Bloomberg