China's May Exports Rise 7.6%, Surpass Expectations Despite Trade Tensions

China's May Exports Rise 7.6%, Surpass Expectations Despite Trade Tensions

China's exports grew by 7.6% year-on-year in May, reaching $302.35 billion and surpassing analyst expectations. This marked the fastest export growth since April 2023. In contrast, imports fell by 1.8% to $219.73 billion, missing the forecasted growth of around 4%. The robust export performance contributed to an increase in China's trade surplus, which widened to $82.62 billion from April's $72.35 billion.

This export growth occurs amid heightened trade tensions, with the United States increasing tariffs on China-made electric cars and Europe considering similar measures. Despite the positive export data, China's economic recovery remains uneven, as factory activity slowed more than anticipated in May. The country continues to face challenges from a protracted property crisis and subdued domestic consumption. The International Monetary Fund has upgraded its growth forecast for China in 2024 but cautions about ongoing risks from the property sector.

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