Long Beach, California — China’s export activity saw a significant uptick in April, driven by increased shipments to Southeast Asia, despite a notable decline in exports to the United States due to newly imposed tariffs. According to data from the Chinese customs authority released on Friday, exports rose by 8.1% in dollar terms compared to the same month last year, surpassing expectations from analysts who predicted a more modest increase of 1.9%.
Conversely, imports experienced a slight decline of 0.2%, contrasting with forecasts that anticipated a sharper drop of 5.9%. The decrease in imports indicates ongoing challenges within China’s economy, particularly in bolstering domestic demand.
Outbound shipments to the U.S. fell dramatically, plunging over 21% year-on-year. This sharp decrease coincides with a 14% drop in imports from the U.S., reflecting the repercussions of hefty tariffs imposed by the U.S. government. Economists suggest that the increase in overall exports may reflect transshipments through third countries or contracts finalized before the tariffs took effect. Expectedly, analysts foresee a gradual deterioration in trade data over the coming months.
Significantly, China’s exports to the Association of Southeast Asian Nations surged by 20.8% in April compared to the previous year, building on an already strong growth of 11.6% noted in March. Meanwhile, imports from Southeast Asia grew by 2.5%, indicating a robust demand in the region for Chinese goods.
Exports to the European Union also recorded a healthy rise of 8.3%; however, imports from the EU dropped sharply by 16.5%. This divergence highlights the complex dynamics of China’s trading relationships amid the global economic landscape.
March had already shown a robust growth in China’s global shipments, with a notable 12.4% increase from the previous year as businesses rushed to send goods abroad ahead of potential tariff escalations. However, imports did not keep pace, falling by 4.3%, which underscores the difficulties Beijing faces in stimulating domestic consumption.
The imposition of high tariffs, including a 145% levy on all imports from China by the U.S., has led the Chinese government to retaliate with its own tariffs, set at 125% on U.S. goods. Both nations have attempted to mitigate the economic fallout from these substantial tariffs by granting exemptions for specific critical products.
In an effort to counteract the declining number of container vessels traveling from China to the U.S., which saw a marked reduction by the end of April, the Chinese government has implemented measures to encourage exporters to refocus their efforts on the domestic market. This shift, however, raises concerns about potential economic deflation as the country navigates through these turbulent trade waters.