AFP,
Beijing
China’s trade grew faster than expected last month, official data showed Saturday, withstanding pressure from war in the Middle East and reversing a decline in exports to the United States.
Booming trade has represented a vital lifeline for Beijing in recent years as the domestic economy lags, with sluggish spending and a stubborn debt crisis in the property sector weighing on activity.
The war with Iran, launched by the United States and Israel in late February, has produced new risks for China’s economy, though its trade has so far appeared to be weathering the disruptions.
Exports from the manufacturing powerhouse were up 14.1 percent in April compared to the same month last year, the General Administration of Customs (GAC) said.
The growth outpaced a Bloomberg forecast of 8.4 percent based on a survey of economists, and also picked up significantly from the 2.5 percent increase in March.
Analysts say China’s diversified energy supply insulates it from immediate shocks from the war, though any global economic downturn would eventually weaken demand for its exports.
Amid a shaky truce, observers are awaiting a high-stakes meeting in Beijing next week between Chinese President Xi Jinping and US counterpart Donald Trump.
The talks previously set for late March were delayed by the war in the Middle East, which has sent global energy prices soaring as shipping through the vital Strait of Hormuz has effectively come to a halt.
The world’s second-largest economy produced a record-breaking trade surplus last year at $1.2 trillion. For Trump, imbalance in the countries’ trade relationship has long been a major sticking point.
Ahead of the key meeting, China’s exports to the United States grew 11.3 percent year-on-year in April, GAC data showed Saturday, returning to growth after dropping sharply by 26.5 percent in March.
Shipments to the United States had also dropped 11 percent in January and February combined.
Trade is set to be a prominent topic in the upcoming meeting between Xi and Trump, with both leaders eyeing key concessions for their massive economies.