China’s exports rose sharply in April, driven by a significant increase in shipments to Southeast Asian countries.
The export growth helped partially offset the sharp decline in goods sent to the United States, which was triggered by higher U.S. tariffs that came into effect last month.
According to data released on Friday by China’s customs administration, exports in April increased by 8.1% in U.S. dollar terms compared to the same month last year — well above Reuters’ forecast of a 1.9% rise.
However, imports declined by 0.2% in April, compared to economists’ expectations of a 5.9% drop.
According to CNBC’s calculations based on official customs data, China’s exports to the United States fell by more than 21% year-on-year in April, while imports from the U.S. dropped by around 14%.
Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, said that the export growth may partly be due to transshipments through third countries and deals made before the tariffs were officially announced. He expects trade data to weaken in the coming months.
China’s exports to the Association of Southeast Asian Nations (ASEAN) surged by 20.8% year-on-year in April, up from an 11.6% increase in March. Imports from the region also rose by 2.5%.
Meanwhile, exports to the European Union rose by 8.3%, while imports from the bloc fell by 16.5% year-on-year.
In March, China’s global exports had jumped by 12.4% annually, as businesses rushed to ship goods before higher tariffs took effect. However, imports declined by 4.3%, highlighting the ongoing challenge of reviving domestic demand in China.
U.S. President Donald Trump has imposed tariffs of up to 145% on all Chinese imports, prompting China to retaliate with tariffs of up to 125% on American goods. Both sides have since granted exemptions for certain key products to mitigate the economic impact.
According to Raymond Yeung, Chief Economist for Greater China at ANZ Bank, the number of container ships departing from China to the U.S. dropped significantly toward the end of April.
The Chinese government has been encouraging exporters to redirect their products to the domestic market — a move that could deepen deflationary pressures on the economy, as prices for goods and services continue to fall.
China’s Export Surge in April Offsets U.S. Trade Slump
In April, China’s exports grew by 8.1% year-on-year, significantly outpacing expectations, mainly due to strong demand from Southeast Asian countries. Exports to ASEAN rose by 20.8%, while shipments to the European Union increased by 8.3%.
However, overall imports edged down by 0.2%, a smaller decline than economists had forecast. Trade with the United States saw a steep decline, with exports dropping over 21% and imports falling by 14%, largely due to higher tariffs implemented last month.
Economists suggest that part of the export boost may stem from transshipments and pre-tariff agreements. Analysts warn that trade data could weaken in the coming months as the impact of tariffs deepens.
The Chinese government is urging exporters to focus on the domestic market, raising concerns of increasing deflation. Container traffic to the U.S. has also noticeably decreased, signaling a potential long-term shift in trade patterns.
