China's exports rose at the fastest pace in more than a year in May, the government said on Friday, as factories unloaded appliances, cars and electronics and boosted exports to their highest growth in more than a year. Global response Enhanced.
The value of China's exports rose 7.6 percent compared to May 2023, while prices of many manufactured goods coming out of China are falling.
China is rapidly building new factories and expanding existing ones. National StrategyBut spending by Chinese families is weak, as their apartment prices have been falling steadily for a long time.
Much of the factory's excess output is being exported. For example, with fewer Chinese families buying new apartments, sales of home appliances are down. The value of appliance exports in May rose 18.3 percent from the same month a year earlier, the government said. And because demand in China is much weaker, appliance prices have fallen. The actual number of appliances exported last month rose 27.8 percent.
China's trade surplus, the difference between what it earns by selling goods to the world and what it spends on imports, widened to $82.6 billion in May. That was 25.6 percent higher than a year earlier. It was the largest May ever and one of the highest months ever except during the pandemic, when China exported huge amounts of medical equipment, exercise equipment and other manufactured goods.
China's trade surplus narrows significantly in May and widens significantly at the end of the year, when its exporters stock up for the Christmas season.
The volume of many exports, apart from household appliances, is growing far faster than their value. So many containers full of goods are leaving China, while fewer are returning with imports, that shipping lines have run out of containers in China.
The value of China's imports increased only 1.8 percent in May.
Chinese companies are facing more barriers to trade. President Biden Tariff was increased on 14 May The European Union, which accounts for about 4 percent of China's exports to the United States, is expected to decide next week whether to impose tariffs on China's electric car exports. Developing countries such as Brazil and India are also taking steps to protect their factories and industrial workers from Chinese competition.
China said on Friday that the export value of trucks and cars in May rose 16.3 percent from a year earlier. Details between gasoline-powered cars, electric cars and diesel trucks are usually released at the end of the month.
The tariff hikes have not yet significantly hurt China's exports, and may even help them in the short term. Some Chinese companies have rushed to ship goods to emerging markets in Latin America and elsewhere before the tariffs go into effect.
Over the past year, China has boosted exports to Vietnam and Mexico, where goods can be reprocessed and then shipped to the United States or Europe with little or no tariffs. These more complex trade routes, combined with weakness in China’s currency exchange rate, could reduce the effectiveness of tariffs, research firm Capital Economics said.
“Even once tariffs are implemented, their impact can be mitigated through trade route changes and adjustments to the exchange rate,” the firm said in a research note.
China's growing surplus is helping offset a weak domestic economy.
Chinese consumers' reluctance to spend can be easily seen on the streets of Shanghai and Beijing. Many restaurants in Shanghai and Beijing are empty even on weekend nights. Stores have few or no customers, and shoppers look bored. Cheap cosmetics made in China are outselling expensive foreign brands, and liquor sales have declined as consumers are buying beer instead.
The United States reported this week that its trade deficit widened significantly in April to $74.6 billion. JPMorgan said in a research note that the country's trade deficit could hurt its economic growth this spring, causing growth to drop by about one percentage point from April to June. The US economy has seen a slowdown in growth. Annual rate 1.3 percent In the first three months of this year.
Li You Contributed to research.