China’s export machine defies gravity as shipments soar in May
After a strong April, China’s exports surged once again in May, as the country’s firms continue to shrug off the impact of the Iran war
China’s vast export sector continued to defy headwinds from the US-Israel war on Iran in May, as shipments skyrocketed on the back of increased demand for products related to artificial intelligence and a spike in US imports as trade relations continued to recover in the aftermath of the bilateral tariff war.
The country’s exports rose by 19.4 per cent year on year to US$376.78 billion in May, according to Chinese customs data released on Tuesday. The reading was significantly higher than a forecast of 12.39 per cent growth from economists polled by financial data provider Wind.
China also saw imports grow by 27.4 per cent last month to US$271.35 billion, surpassing projections of 20.15 per cent growth in a Wind poll. That brought China’s trade surplus to US$105.43 billion last month, up from US$84.82 billion in April.
“The momentum is bolstered by the global AI story, with increased trade in electronics and higher prices driven by strong demand,” said Gary Ng, senior economist for the Asia-Pacific region at Natixis. “It shows that China remains competitive in exports, and that higher global inflation has not yet affected demand.”