China exports grow despite US tariff hike, imports fall to three-year low

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China exports grow despite US tariff hike, imports fall to three-year low

On Monday, the 10th of June 2019, data released by Chinese customs by GMT. 01.33, had showed that unexpectedly China’s exports had returned to growth in May despite a US tariff hike imposed earlier on May, however, China’s imports had dwindled to its lowest in almost three years, raising questions over the weak domestic demands of Beijing amid an ongoing slowdown that might force China to further enhance its financial stimulus.

Although some analysts had been quoted saying following the reveal of the trade data that a havoc-scale rush of Chinese exporters to reach shipments to United States before May 31th, in order to avert a new tariff on about $300 billion worth of Chinese goods had resulted the unexpected rise of export data, however, the better-than-anticipated Monday’s (June 10th) trade data was unlikely to head off lurking fears of escalating a longer and costlier trade spat between the world’s two largest economic superpowers.

Never the less, according to Chinese official data released on Monday (June 10th), China’s exports in May had surged by 1.1 percent on a year-on-year basis, while market was anticipating a moderate decline, given the extent of its rumbling trade row with United States.

Expressing a sheer optimism over China’s growth outlook in June, economists at Nomura wrote in a client note following the reveal of Monday’s trade data, “We expect export growth to remain positive in June, likely supported by continued front-loading of U.S.-bound exports, but it should then tumble in the third quarter, when we expect the threatened tariffs to be imposed.

Therefore, we believe Beijing will likely step up its stimulus measures to stabilize financial markets and growth”.