China’s trade with the United States and Australia increased in April despite tensions
The containers lie at the Yangshan Port in Shanghai, China, August 6, 2019.
Aly Song | Reuters
BEIJING – Chinese exports increased more than expected in April, with global demand for Chinese products remaining high amid various stages of tackling the coronavirus pandemic.
Exports denominated in US dollars rose 32.3% in April from a year ago, China’s customs agency said on Friday. That beat a growth estimate of 24.1% of analysts polled by Reuters.
Imports rose 43.1% in US dollars, also exceeding growth expectations of 42.5%, according to a Reuters poll.
Exports were boosted by demand for electronics and high-tech products, while China bought more integrated circuits amid U.S. sanctions and a global chip shortage.
“The outlook for Chinese exports is positive,” Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, said on Friday. He expects Europe and Japan to follow the US economic recovery once vaccination rates rise.
Chinese trade with major partners has increased despite political tensions. Under the administration of US President Donald Trump, China and the United States have imposed tariffs on goods worth billions of dollars. Tensions between China and Australia worsened on Thursday after Beijing suspended a high-level economic dialogue between the two countries.
In April, exports to the United States increased 31% from a year ago to $ 42.05 billion. Imports from the United States increased 52% to $ 13.94 billion.
Capurso attributed the improvement in trade between the United States and China to a major US fiscal stimulus under the leadership of President Joe Biden.
“The resumption of trade between the United States and China has reversed much of the trade war crisis, even though few trade restrictions have been removed,” he said.
He noted that China has also bought Australian products despite the restrictions, mainly on agricultural products.
“Although product details are not available, we believe the surge in commodity prices is behind the expansion of Chinese imports from Australia and China’s trade deficit with China. Australia, ”Capurso said.
Chinese imports from Australia rose 49% in April to $ 14.87 billion, while exports rose 20% to $ 5.25 billion.
Exports to the EU rose 24% to $ 39.92 billion, while imports climbed 43% to $ 26.79 billion.