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China’s exports rose slightly in dollar terms last month as Beijing pins its hopes on a manufacturing-led revival to boost sluggish growth in the world’s second-largest economy.
China’s exports rose 1.5% in April from a year earlier, reversing the annual 7.5% decline in March when falling prices hit Chinese producers. Analysts polled by Reuters had expected exports to increase by 1.5%.
China’s imports rose 8.4% in April, beating analysts’ expectations for growth of just under 5%.
Chinese President Xi Jinping’s government is relying on high-tech manufacturing to offset an economic downturn caused by declining real estate investment, weak consumer confidence and inefficient infrastructure spending.
Last month, China reported first-quarter GDP growth of 5.3% from a year earlier, faster than analysts expected, despite rising geopolitical tensions over trade and industrial policies.
The Chinese government has set a 5% GDP growth target for 2024, the same number as last year and the lowest in decades, but analysts say it is still ambitious. It is highly praised.
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Many economists are calling on the Chinese government to do more to boost consumer and investor confidence and encourage spending through direct economic stimulus and strengthening the welfare safety net.
The government stopped short of implementing a sweeping stimulus package, but announced further support for factories, including a program for industry to “upgrade” equipment and consumers to buy new appliances.
China’s trade volume also expanded in the first quarter, with exports increasing 1.5% year-on-year in dollar terms and imports increasing 3.2% over the same period.
The Chinese government has accused the United States and Europe of pursuing unfair trade practices that generate supply that far exceeds domestic demand and where Chinese exporters dump artificially cheap subsidized goods onto international markets. It’s drawing criticism.
In response, Chinese authorities have become increasingly outspoken about Western criticism of the country’s industrial policies.
Last month, Mr. Xi told German Chancellor Olaf Scholz during a visit to Beijing that his country’s exports were contributing to easing global inflation and supporting the transition to clean energy.
He also told European Commission President Ursula von der Leyen and French President Emmanuel Macron on Monday that China does not have an overcapacity problem.
Additional reporting by Wenjie Ding in Beijing and William Sandlund in Hong Kong
