Select Language:
China’s foreign trade reached new heights last month, driven by a recovery in trade with the United States, strong performance in non-US markets, and significant growth in high-tech exports, which offset the negative impact of regional conflicts in the Middle East.
According to customs data released on May 9, China’s exports increased by just over 14% in USD terms, totaling $359.4 billion in April compared to the previous year. This follows a 2.5% rise in March. Meanwhile, imports grew for the fourth consecutive month, rising 25% to $274.6 billion, although this growth rate slowed slightly from the previous month’s 28%.
Despite the promising growth this month, analysts caution that global uncertainties, including the Middle East conflict and emerging economic pressures worldwide, could cause export growth to slow sharply in the coming months.
Trade with the US saw an 11% increase in April, rebounding from a 27% decline in March. Imports from the US rose by 9%, up from 1% in March. However, for the first four months of the year, overall trade with the US remains down in dollar terms, decreasing by 10.4%. Exports to the US fell by 10.2%, and imports decreased by 10.9%.
The sharp rebound in US exports in April was mainly attributable to a low comparison base from the previous year when tariffs were imposed under the previous administration. The temporary easing of trade tensions between the two nations also contributed to a stabilization of imports. Still, experts warn that lingering consumer confidence issues and uncertain restocking trends in durable goods could hinder sustained growth, according to industry analysts.
Trade with the Middle East faced setbacks after escalating regional tensions. Exports to the region dropped by 41% in March, contributing to a 2.7 percentage point slowdown in overall export growth. Although data for April isn’t yet confirmed, it is expected that this decline persisted, but other factors helped balance the overall figures.
The surge in April exports was also supported by a global investment cycle in artificial intelligence, which increased demand for chips, computer parts, and electronic components, raising the value of outbound shipments. Additionally, China’s manufacturing upgrade continued, supporting exports of new energy vehicles and high-tech products.
Experts expect the ongoing semiconductor cycle and global inventory restocking to sustain China’s export momentum during this period.
Exports to regions outside the US remained robust at $322.7 billion last month, both month-over-month and compared to the same period last year, indicating healthy demand across international markets.
Orders from Persian Gulf countries declined in April amid geopolitical tensions, but stronger demand from South America offset these losses, resulting in an overall order increase of about 10% year-over-year.
Artificial intelligence-driven demand continued to influence China’s trade figures last month. Although exports of integrated circuits grew by only 3.7% in volume, their value nearly doubled. Data-processing equipment and parts exports surged by 47%, representing a significant portion of the overall export growth.
Automotive exports also played a vital role, with vehicle shipment volumes increasing by over 50% and values rising by 44%. High-tech exports saw a 39% rise in value, further reflecting ongoing industrial upgrades supporting export demand.
A leading auto parts manufacturer in the Yangtze River Delta reported a 50% increase in orders this year, with the factory operating overtime to fulfill rising demand.
ChatGPT
Perplexity
Gemini AI
Grok AI
