China’s exports rise 1.5% in April Y-Y

Chinese exports grew 1.5 per cent year-on-year in April, meeting analysts expectations after a 7.5 per cent decline in March, Reuters reported, citing official data released on Thursday.

Imports saw a more robust increase of 8.4 per cent, exceeding forecasts and reversing a March slump. This pickup suggests improvement in both domestic and foreign demand.

Despite the positive trade data, China faces significant headwinds. The property crisis continues, and Fitch Ratings recently downgraded its outlook on China’s credit rating due to concerns about slowing growth and rising government debt.

The government is taking steps to address these challenges. The Politburo, China’s top decision-making body, pledged to increase economic support through measures like interest rate adjustments and looser bank lending restrictions.

Chinese exporters face potential difficulties in the coming months. Rising interest rates in other countries could dampen overseas demand, while fierce competition necessitates continued price cuts.

However, analysts expect a shift towards exports of industrial inputs like chemicals and machinery as Chinese companies seek to diversify markets.

China’s trade surplus widened to $72.35 billion in April, exceeding expectations. This suggests some resilience in the export sector despite ongoing challenges.