Newsletter summary
China's exports increased by 1% in April compared with the same period last year.Abradoodlebingo.5% exceeded expectationsAbradoodlebingoImports increased by 8.4%, and the trade surplus widened to US $72.35 billion. The growth momentum of the technology cycle is expected to boost trade growth, but we need to be wary of the risks of falling overseas demand and less-than-expected domestic economic repair.
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China's exports resumed growth in April, with a rising trade surplus. China's exports rose 1.5 per cent in April from a year earlier, far more than expected, showing signs of a pick-up in global demand and domestic production.
China's exports reached $292.45 billion in April, up 1.5 per cent from a year earlier and 4.6 per cent month-on-month. From January to April, China's exports and imports denominated in US dollars increased by 1.5% and 3.2% respectively over the same period last year, with a cumulative surplus of 2%.Abradoodlebingo, 55.66 billion dollars.
In the export market, the growth rate of exports to the United States and the European Union rebounded, with year-on-year growth of-2.8% and-3.6% respectively, higher than the previous value.Abradoodlebingo13% and 11%. Year-on-year growth in exports to ASEAN turned positive to 8.1%. From January to April, dollar-denominated exports fell 1 per cent to the US, 4.8 per cent to the European Union and 6.3 per cent year-on-year to ASEAN.
In terms of product categories, the export growth rate of capital-intensive products and labor-intensive products is differentiated. The export value of integrated circuits, liquid crystal panels and other electronic products all achieved double-digit growth. Exports of home appliances increased by 11% year-on-year, and car shipments increased by 28.8% year-on-year. By contrast, exports of labour-intensive goods such as toys and clothing fell by about 10 per cent. From January to April, car exports increased by 26% compared with the same period last year, household appliances exports increased by 23.3%, and ship exports increased by 19%.
The growth momentum of the science and technology cycle is expected to boost foreign trade growth. The official manufacturing PMI in April showed that China's new export orders remained above 50 for the second month in a row. In the Caixin China manufacturing purchasing managers' index PMI, the index of new export orders in April hit the highest level since December 2020.
Imports rose 8.4% in April from a year earlier, exceeding market expectations, indicating that the pick-up in domestic production has boosted imports of raw materials. Commodity imports increased by 7.2 per cent year-on-year, and purchases of coal, iron and copper ores all achieved double-digit year-on-year growth.
The trade surplus in April was $72.35 billion, up $13.799 billion from the previous month. The growth momentum of the global science and technology cycle is still strong, and exports are expected to continue to maintain moderate growth, boosting China's exports of capital-intensive goods and trade surplus.
Risk tip: be wary of the risk of a significant decline in overseas demand and a weaker-than-expected repair of the domestic economy.