China’s Trade Rebounds as Exports and Imports Grow, But Outlook Remains Uncertain

The latest data shows that China’s exports and imports have returned to growth in April, following contractions in the previous month. Exports rose by 1.5% compared to a year earlier, while imports surged by 8.4%. China’s trade surplus also increased to $72.35bn. Analysts suggest that the outlook remains uncertain due to global economic trends, with export volumes expected to retreat in the coming months. Imports are forecasted to continue growing due to fiscal spending supporting import-heavy construction. Shipments to the US and EU decreased by 1.6% and 3.3%, respectively, in April. The Association of Southeast Asian Nations remains China’s largest export destination, accounting for 16.9% of total exports during the first four months of the year. Some economists predict that trade will make a smaller contribution to China’s growth in the second quarter due to higher risks associated with exports. The Chinese government aims for an annual economic growth rate of around 5% in 2022, which is expected to require additional policy support.