China’s Exports Exceed Expectations in May 2024 Amid Growing Trade Tensions
Official customs data reveals a 7.6% year-on-year increase in exports for China in May 2024, surpassing economist forecasts. Despite escalating trade disputes with the U.S. and Europe, the surge in exports highlights strong overseas demand amidst weak domestic consumption.
China’s exports grew faster than anticipated in May 2024, according to official customs data released on Friday. Figures show a 7.6% year-on-year increase in exports, reaching $302.35 billion, surpassing economist forecasts of a 6% rise. Imports, however, grew by only 1.8% to $219.73 billion, falling short of the expected 4% growth.
Despite rising trade tensions with the U.S. and Europe, this export surge suggests stronger overseas demand amid weak domestic consumption. China’s trade surplus widened to $82.62 billion, up from $72.35 billion in April.
Xi Jinping’s government has been focusing on manufacturing as part of an enhanced industrial strategy, despite global scrutiny. Recent U.S. tariffs of 100% on Chinese electric vehicles and an impending European Commission probe into China’s EV subsidies reflect escalating trade disputes.
May also saw mixed economic signals, with the official manufacturing purchasing managers’ index dropping to 49.5, indicating a contraction in factory activity. However, a separate Caixin survey pointed to increased activity among private enterprises.
China’s economic policy currently aims for a 5% GDP growth target for 2024, against a backdrop of efforts to counter a prolonged property market slowdown and bolster the manufacturing sector.