On Monday, China’s Customs data had unveiled that the world’s second-largest economy’s imports soared by the steepest pace in more than a decade in May, largely boosted up by an increase in demands of raw materials in context of an ease of pandemic restrictions coupled with a reopening of major economies including EU and the US, though China’s exports growth lost traction and missed analysts’ estimate by a wider margin due to disruptions stemming from a resurgence in pandemic cases in major Southern ports.
In point of fact, although a rapid economic recovery in developed countries appeared to have muscled up demands for Chinese goods, a swathe of negative stimulus ranging from a global-scale semiconductor shortage to higher raw material and freight costs to a bottlenecked supply chain alongside a stronger Yuan, seemingly had dampened exporters’ outlook in the largest exporting economy around the globe.
China’s imports surge in May, exports slow more than anticipated
According to China customs data released earlier on Monday, China’s exports in US Dollar grew 27.9 per cent last month compared to the same time a year earlier, below an April reading of 32.3 per cent of growth, missing analysts’ estimate of 32.1 per cent.
On the contrary, Chinese imports skyrocketed around 51.1 per cent in May in US Dollar terms on a year-on-year basis, marking up the steepest monthly growth since January, 2011, however, hovered just a notch shy of analysts’ estimate of a 51.5 per cent rise, mostly driven by an abrupt uptick in raw materials’ prices amid growing demands of commodities likes of coal, iron ore, copper and steel.
Meanwhile, referring to a surprise resurgence of pandemic cases in Southern port cities which appeared to be wreaking havocs on supple chains, a chief economist at Pinpoint Asset Management, Zhiwei Zhang said following the announcement, “Exports surprised a bit on the downside, maybe due to the COVID cases in Guangdong province which slowed down the turnover in Shenzhen and Guangzhou ports”.