The Strategist

Analysts: Chinese exports falling slower than imports

06/08/2020 - 05:28

The trade balance of China in May 2020 was a record high - $ 62.9 billion, the PRC customs said. The growth is explained by a limited decline in exports - by 3.3% - with a sharp contraction of imports - by 16.7%.

Tuija Aalto via flickr
Tuija Aalto via flickr
China's exports in May fell again - by 3.3%, to $ 206.8 billion, compared with the same period last year, while imports showed a bigger decline - by 16.7%, to $ 143.9 billion, resulting in a surplus of trade rising to a record high of $ 62.9 billion ($ 45.34 billion in April), including from the United States to $ 27.9 billion ($ 22.8 billion in April), Chinese Customs said. In April, trade volumes managed to recover - deliveries abroad showed an increase of 3.5% year-on-year, but this effect was short-lived. While such a sharp drop in imports is due to a decrease in the supply of components for re-export, ING points out.

With the United States, China's trade in the first five months of this year decreased by 12.7% in annual terms, to $ 183.62 billion. According to statistics, China's exports to the United States fell by 14.3% to $ 137.6 billion. American imports in China decreased by 7.6% to $ 46.02 billion. Last year, trade with the United States decreased by 14.6% (including exports from China - by 12.5%, imports from the USA - by 20.9%).

At the end of May, Chinese companies owned by the state were instructed to stop the purchase of soybeans and pork from the USA within the first phase of the bilateral trade deal. The reason was the measures taken by Washington in connection with the adoption of a resolution on the development of a law on national security in Hong Kong. Refusal of purchases may lead to the collapse of the US-China trade deal signed in January.