While global coronavirus lockdowns ,China Imports exports contracted in May. Although a sharper than expected fall in imports pointed to rising pressure on producers while global growth stalls.
The gloomy trade readings for the world’s second-biggest economy could pile pressure on policymakers to roll out more support to a sector.
Overseas shipments in May fell 3.3% from a year earlier, customs data showed on Sunday after a surprising 3.5% gain in April. That compared with a forecast of a 7% drop in a poll by Reuters.
While exports fared slightly better than expected, imports tumbled 16.7% compared to a year earlier.
Worsening from a decline of 14.2% the previous month and marking the sharpest decline since January 2016.
It was predicted to fall 9.7% in May. Wang Jun, chief economist at Zhongyuan Bank said that exports gained from market and exchange rate deflation in ASEAN (Association of Southeast Asian Nations). While imports were impacted by inadequate domestic demand and declines in commodity prices.
As a result , China posted a record $62.93 billion trade surplus last month. The highest since Reuters began tracking the series in 1981. Compared to the poll’s forecast for a $39 billion surplus and $45.34 billion in April.
China’s trade surplus with the US grew to $27.89 billion in May. According to Reuters’ estimate based on customs results.
It comes as if it were Sino-U.S. Tensions are rising again, though sources say that President Donald Trump has little choice but to stick to a Phase 1 trade deal for the time being.
Highlighting the uncertain outlook, the Chinese government said in late May. For the first time since 2002, it did not set an annual growth goal indicating a cautious commitment to policy easing. While some expect domestic demand to bounce back somewhat, although export conditions remain volatile.