China receives great news amid tariff war with US

According to data just released by the General Administration of Customs of China, the country's exports in April reached 315.69 billion USD, up 8.1% compared to the same period last year. Although lower than the 12.4% increase in March, this figure still far exceeded market expectations.

However, exports to the US fell sharply by 21%, the deepest decline in 21 months, reversing the 9.1% increase in March.

"This data is a big surprise, far exceeding my initial estimate of only a 2 to 3 percent increase," Xu Tianchen, senior economist at the Economist Intelligence Unit (EIU), told SCMP.

However, he also noted that the full impact of the new US tariffs may not be reflected in this month's figures, while small businesses in Chinese cities have already started to feel the pressure.

Dan Wang, head of China at financial services firm Eurasia Group, agreed, calling the growth “quite surprising.” She said that the tariffs may not have weakened Chinese manufacturing as expected, but instead boosted short-term demand for intermediate goods imported from China.

"When some factories in China had to temporarily stop operations, overseas manufacturing facilities were working at full speed to complete orders before the tariff increase. Therefore, production increased and they needed to import high-quality raw materials and components from China. This in turn boosted China's exports during this period," said Ms. Dan Wang.

The positive export news could give Beijing an edge in trade talks with Washington, as the world’s second-largest economy looks set to ease tensions as it begins trade talks with the US in Switzerland on May 10.

General Secretary and President of China Xi Jinping (Photo: Meng Jun).

However, China also faces deflationary pressures amid falling consumer and producer prices in April.

China's consumer price index (CPI), a key gauge of inflation, fell 0.1% in April from a year earlier, the National Bureau of Statistics said. Last month, China's food prices fell 0.2% while service prices rose 0.3%.

"The decline in international oil, natural gas and non-ferrous metal prices has affected prices in some industries," Dong Lijuan, chief statistician of the National Bureau of Statistics, said in the report.

To offset the export shortfall, China has rolled out a number of measures to boost domestic consumption. Some localities are allocating more budgets to encourage spending. Sichuan Province, for example, offers preferential interest rates on large consumer loans for purchases of cars, electronics, furniture and home appliances.

The government has also boosted tourism by expanding duty-free shops, increasing tax refund limits and easing visa requirements for citizens of many countries.

Zhiwei Zhang, chief economist at Pinpoint Asset Management, said the current stimulus policies are working. “China’s economic fundamentals remain stable and resilient,” she said.

Source: https://dantri.com.vn/kinh-doanh/trung-quoc-don-tin-vui-lon-giua-cuoc-chien-thue-quan-voi-my-20250512120718142.htm