China Exports Growth Beats Expectations; Imports Drop At Slower Pace

(RTTNews) - China's exports grew more than expected in April despite the sharp contraction in shipments to the United States following the trade tariff hikes, while imports decreased at a meager pace, official data revealed on Friday.

Exports advanced 8.1 percent on a yearly basis in April, customs data showed. While the growth rate slowed from 12.4 percent in March, this was far better than the expected expansion of 1.9 percent.

At the same time, imports fell only 0.2 percent from a year ago, compared with the economists' forecast of a 5.9 percent decline. Moreover, the pace of decrease slowed from 4.3 percent drop recorded in March.

As a result, the trade surplus decreased to $96.18 billion from $102.64 billion in the previous month. The expected level was $97.0 billion. Data showed that exports to the US declined sharply by 21 percent in April due to the tariff hikes. Imports from China contracted 13.8 percent.

US President Donald Trump imposed 145 percent tariffs on China and the latter has retaliated with 125 percent levies on US goods.

The US and Chinese officials are set to meet in Switzerland this weekend with an intention to de-escalate trade tensions. This will be the first high-level US-China trade talks since the escalation of trade war in April. Investors anticipate partial rollbacks of duties from both sides.

Reports of the death of China's exports look to be greatly exaggerated, ING economist Lynn Song said. April trade data may strengthen China's hand heading into initial negotiations, he noted.

"With current exorbitant tariff levels doing neither side any favours, there's at least hope for an early agreement to lower rates to a more reasonable level," the economist said.