BEIJING: China’s imports and exports roared back to growth in April after a significant drop in the previous month, according to official data on Thursday, and the strong data add to growing signs that the world’s second-largest economy remains on a steady recovery trend despite lingering challenges at home and abroad.
The strong trade data underscored the resilience of China’s trade sector, with growth in exports pointing to the country’s unshakable role in global supply chains, while the expansion in imports highlighted strong domestic demand, experts said. With the country’s laser-like focus on the economy through a slew of stimulus measures, China’s economic recovery will continue to consolidate and is on track to meet annual growth targets, they noted.
In April, in US dollar terms, total imports and exports surged 4.4 percent year-on-year, reversing a 5.1 percent drop in March, according to the General Administration of Customs (GAC) on Thursday. Notably, exports expanded by 1.5 percent year-on-year in April, compared to a 7.5 percent contraction in the previous month, while imports jumped by 8.4 percent year-on-year, reversing a 1.9 percent decline in March, the GAC data showed.
“First-quarter trade data were dragged down by the drop in March due to a high base in March 2023. And April’s data more accurately reflected the development trade in China’s import and export sectors,” Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the media on Thursday.
Zhou said that the trade data demonstrated the steady recovery trend of the Chinese economy supported by a strong rebound in the trade sector in the first four months of 2024.
During that period, in Chinese yuan-denominated terms, China’s total imports and exports expanded by 5.7 percent year-on-year, accelerating from a 5 percent growth in the first quarter of the year, according to the GAC.
In terms of top trading partners, China’s imports and exports with the Association of Southeast Asian Nations, better known as ASEAN, its largest trading partner, jumped by 8.5 percent year-on-year from January to April. Imports and exports with the EU, the second-largest trading partner, dropped by 1.8 percent year-on-year, while that with the US, the third-largest trading partner, grew by 1.1 percent year-on-year.
Moreover, among the highlights of Thursday’s data are the robust growth in exports by private enterprises and exports of mechanical and electrical products – both major growth drivers. Private firms’ total exports expanded by 9 percent year-on-year in the first four months in yuan terms, accounting for 64.7 percent of China’s total export value. Exports of mechanical and electrical products grew by 6.9 percent, accounting for 59.2 percent of China’s total export value, according to the GAC.
The strong figures for the January-April period also reflected China’s strong competitiveness and prominent role in the global industrial and supply chain, Zhou noted. “If there are no major ‘black swan’ events in the future, and there are no policies and actions that significantly interfere with trade activities, trade will still maintain a sustained recovery,” he said.
While the growth in exports highlighted China’s unshakable role in global trade, the expansion in imports accentuated the strong recovery in China’s domestic demand, which is key to the overall economic recovery, according to experts.
“In the previous two years, the growth rate of imports was relatively low, and the total import and export volume was mainly supported by exports, reflecting insufficient domestic demand, Hu Qimu, a deputy secretary-general of the digital-real economies integration Forum 50, told the Global Times on Thursday.
“But vis-Ã -vis this year’s data, the growth rate of imports is higher than that of exports, indicating that domestic demand is recovering and the overall internal circulation is becoming smoother,” Hu noted.
Hu said that China has moved swiftly to tackle systemic risks, consumption has been recovering steadily and operations of various industries have been improving significantly.
The impressive trade data on Thursday come on the heels of a slew of indicators that showed a strong recovery momentum in the Chinese economy. In the first quarter of 2024, China’s GDP expanded by 5.3 percent year-on-year, beating market expectations. Retail sales, a main gauge of consumption and the biggest economic growth driver, increased by 4.7 percent year-on-year.
Such strong momentum in China’s economic recovery is widely expected to further gather traction, as Chinese policymakers continue to step up policy support to boost the economy, experts said.
The latest signal of strong policy support came from a meeting, held on April 30, of the Political Bureau of the 20th Communist Party of China Central Committee. Noting that the economy has secured a good start this year, the meeting called for various measures to further consolidate the recovery momentum, including front-loading efforts to effectively put the established macro policies in place and issuing ultra-long special treasury bonds at an early stage, according to the Xinhua News Agency.
In terms of trade, the meeting called for efforts to actively expand trade in intermediate goods, service trade, digital trade, and cross-border e-commerce exports, and support private enterprises in expanding overseas markets.
Apart from policy support, the strong recovery in domestic consumption will help stabilize trade throughout the year, according to Hu. “The full-year trade will maintain a generally positive growth rate that is higher than that of last year,” he said.
Beyond trade, China’s two other main economic drivers – consumption and investment – are also expected to maintain a strong recovery momentum, thanks to intensifying policy support, which will ensure that the full-year economic development goals will be met, experts noted.
In spite of challenges both at home and abroad, China has set a GDP growth target of around 5 percent this year. With the growing positive signs, many experts are increasingly confident that China will be able to meet its 2024 GDP growth target, and the country will remain the main driver for global growth.
