China’s exports grow 7.6% in May, beating expectations despite trade tensions

China experienced robust export growth in May, marking its fastest expansion in over a year, despite ongoing trade tensions.

Customs data released on Friday revealed that exports surged by 7.6% compared to the same period last year, reaching $302.35 billion, the highest growth rate since April 2023. However, imports fell short of analyst expectations, rising by only 1.8% to $219.73 billion, missing the anticipated 4% growth.

The notable increase in exports can be partly attributed to a lower base in the corresponding period last year when exports had declined by 7.5%. In April, exports had grown by 1.5% year-on-year, while imports saw a significant rise of 8.4%.

China’s trade surplus widened to $82.62 billion in May, up from April’s $72.35 billion, driven by the strong export performance.

Despite escalating trade tensions with the U.S. and Europe, including the potential imposition of tariffs on Chinese-made electric cars, analysts remain optimistic. Zichun Huang of Capital Economics noted that foreign tariffs are unlikely to immediately impact exports, suggesting that they might even stimulate exports as companies accelerate shipments to preempt the duties.