Chinese imports grew at a decade-high in May as the country’s economic revamp continues.
In the latest report released at the start of the week, the economic indicator ballooned by 51.1% year over year. This is the highest notched recorded since 2011, although it briefly missed the 51.5% forecast given by analysts earlier.
Nevertheless, it carried the positive momentum incurred in April, where imports recorded a 43.1% hike. In addition, analysts noted that robust orders on commodity goods—industrial metals, agriculture products, and energy commodities contributed to the overall picture.
Meanwhile, Chinese exports managed to follow the uptrend, although at a much slower pace compared to its counterpart.
The measure clocked in a 27.9% growth rate during the same period. However, this missed beating the average consensus of a 32.1% advance and significantly lower than the 32.3% incurred in April.
Experts in the field noted that the bettering global economic outlook contributed to the recent hike. As the manufacturing sector in other countries starts to regain its pre-pandemic pace, there will be a sustained hike in China’s international orders.
However, such a pace will never be linear. Strategists warned that the uptrend in raw material prices combined with port congestions would greatly weigh on trade.
Since the start of the year, manufacturers experienced a surge in factory gate prices due to unprecedented demand. This created a series of intangible bottlenecks in the global supply chain, this weighing productivity down. With this disparity, the country naturally fell into a trade surplus worth $45.53 billion. This number is higher than April’s $42.86 billion.
Trade War Update: Chinese Trade Surplus with the US Hikes
In a field related to trade, the Chinese trade surplus with the United States surpassed the $30.00 billion thresholds.
In the latest Chinese customs data released earlier in the day, the indicator’s total disparity for the first five months of the year came higher than expected.
Not barely done with the first half of 2021, it already came at $132.46 billion for the period covering January to May.
Analysts are impressed with the results, indicating a bettering trade engagement between the world’s two most powerful economies. This bettering trend became noticeable as soon as President Joe Biden assumed the post as the United States leader.
For the record, the East Asian country recorded one of its roughest trade relations with the US under the Trump administration.