China's exports surged 7.6% in May amidst US & Europe trade tensions

Posted on June 17, 2024   |  

China's exports grew by 7.6% in May compared to the previous year, reaching $302.35 billion, marking the fastest growth rate since April 2023, despite ongoing trade tensions.

Imports rose by 1.8% to $219.73 billion in May, missing analyst expectations of a 4% growth.

The significant export growth is partly due to a low base effect from May 2022, when exports had decreased by 7.5%.

In April, exports grew by 1.5% year-on-year, while imports increased by 8.4% compared to April 2023.

China's trade surplus expanded to $82.62 billion in May, up from $72.35 billion in April.

Import volumes remained relatively unchanged in May but are expected to increase soon due to higher government spending in the construction sector, which relies heavily on imports.

The Association of Southeast Asian Nations (ASEAN) was the largest market for Chinese exports, with exports to ASEAN countries rising 9.7% year-on-year to $50.83 billion.

Major categories of export growth included steel, automobiles, home appliances, and ships, with automobile exports seeing the fastest growth at 26.8% year-on-year, totaling 569,000 cars. 

The manufacturing purchasing managers index dropped to 49.5 in May from 50.4 in April, indicating a slight contraction.