Earth Science News
TRADE WARS
China exports beat forecasts ahead of US tariff talks
China exports beat forecasts ahead of US tariff talks
By Peter CATTERALL
Beijing (AFP) May 9, 2025

Chinese exports rose last month despite the trade war raging with the United States, official data showed Friday ahead of talks between the world's top two economies towards easing the standoff.

Experts said that the forecast-smashing 8.1-percent rise indicated that Beijing was re-routing trade to Southeast Asia to mitigate US tariffs of up to 145 percent on Chinese imports imposed by President Donald Trump.

Trade between the world's two largest economies has slumped since Trump imposed the tariffs -- some cumulative duties are 245 percent -- and China responded with levies of 125 percent and other measures.

The year-on-year increase in exports of 8.1 percent in April was much higher than the 2.0 percent forecast by analysts polled by Bloomberg last month.

The data from the Chinese customs bureau showed exports to Thailand, Indonesia and Vietnam surged by double digits, in what one analyst called a "structural repositioning" of trade.

"The global supply chain is being rerouted in real time," Stephen Innes of SPI Asset Management wrote in a note.

"Vietnam looks set to become China's offshore escape hatch for US-facing goods," he said.

"The manufacturing juggernaut is diverting flow wherever the tariff pain isn't."

Month-on-month exports to the United States plunged 17.6 percent.

Analysts at ANZ Research said the data revealed "it is difficult to exclude China from the global supply chain in the short term, considering China's role in manufacturing."

"The implied supply chain realignment as well as the expected outcome of Asia-US trade talks suggests no imminent collapse in China exports," they added.

Global markets have been on a rollercoaster since Trump began his tariff offensive aimed according to the White House at bringing back manufacturing to the United States.

While Trump has suspended for 90 days many of the most painful levies, those on China have remained in place.

Markets have been lifted by optimism over meetings set to take place in Geneva over the weekend between US and Chinese officials -- the first talks between the superpowers since Trump's trade offensive began.

Washington has said it hopes the sitdown will allow for a "de-escalation", while Beijing has vowed it will stand its ground and defend its interests.

- 'Persisting uncertainties' -

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, also attributed the forecast-beating exports to "transshipment through other countries."

But he also cited potential "trade contracts that were signed before the tariffs were announced."

"I expect trade data will weaken in the next few months."

Imports were also being closely watched as a key gauge of consumer demand in China, which has remained sluggish.

They also beat expectations, dropping 0.2 percent, compared with the 6.0-percent slide analysts had estimated.

Chinese policymakers this week eased key monetary policy tools in a bid to ramp up domestic activity.

Those included cuts to a key interest rate and moves to lower the amount banks must hold in reserve in a bid to boost lending.

A persistent crisis in the Chinese property sector -- once a key driver of growth -- also remains a drag on the economy.

In an effort to help the sector, Beijing's central bank chief said it would cut the rate for first-time home purchases with loan terms over five years to 2.6 percent, from 2.85 percent.

The moves represent some of China's most sweeping steps to boost the economy since September.

But analysts pointed to a continued lack of actual stimulus funds needed to get the economy back on track -- a task further complicated by trade headwinds with Washington.

"Even if the tariffs may be trimmed depending on the outcome of US-China trade talks, the persisting uncertainties will continue to accelerate decoupling structurally," Gary Ng, senior economist for Asia Pacific at Natixis, told AFP.

Related Links
Global Trade News

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
TRADE WARS
Chinese fabric exporters anxious for US trade patch-up
Shaoxing, China (AFP) May 9, 2025
Surrounded by samples of silk and glittering tweed in one of China's largest fabric markets, textiles exporter Cherry said she was anxiously awaiting the result of trade talks with the United States this weekend. Her company, which relies on US customers for around half its client base, is one of many caught in the crosshairs as the standoff between Washington and Beijing has escalated this year. Cherry has already had US orders cancelled, and is desperately hoping the negotiations starting Sat ... read more

TRADE WARS
Sotheby's postpones historical gems auction after India backlash

Crisis-hit Maldives secures $8.8bn Qatar investment

10 dead, dozens hurt after boats capsize in China: state media

Mexico's president rejects Trump offer of U.S. troops to fight cartels

TRADE WARS
SMART Launches WISDOM Research Group for Next-Generation 3D-Sensing Technologies

China cracks down on smuggling to enforce rare earth export controls

System lets robots identify an object's properties through handling

TAU Systems Secures Exclusive Beam Time on World's Most Powerful Laser for Advanced Particle Research

TRADE WARS
Pakistan accuses India of altering Chenab River flow as tensions rise

Exploring new frontiers in mineral extraction

New Zealand, Phillippines sign troops deal in 'deteriorating' strategic environment

Iraq farmers turn to groundwater to boost desert yields

TRADE WARS
Thawing permafrost dots Siberia with rash of mounds

Ice cores from tropics challenge Holocene temperature models

Summer 2024 was Lapland's warmest in 2,000 years: study

Melting glaciers at the end of the Ice Age may have sped up continental drift, fueled volcanic eruptions

TRADE WARS
Vertical farming holds promise for high yield and lower environmental cost

Climate change takes spice from Indonesia clove farms

Will the vegetables of the future be fortified using tiny needles?

Chinese tea hub branches into coffee as tastes change

TRADE WARS
Jordan evacuates tourists from Petra after flood hits

Major offshore quake causes tsunami scare in Chile, Argentina

Volcanic eruptions linked to satellite disruption risks in upper atmosphere

Researchers solve one of Earth's ancient volcanic mysteries

TRADE WARS
Drone strike on Port Sudan navy base: army source

MSF hospital bombed in South Sudan

Understanding Nigeria's new wave of jihadist attacks

Paramilitary shelling hits Sudan's presidential palace: army source

TRADE WARS
Sunscreen and shelter strategies may have shielded early humans from solar radiation

'Toxic beauty': Rise of 'looksmaxxing' influencers

'Toxic beauty': Rise of 'looksmaxxing' influencers

A visual pathway in the brain may do more than recognize objects

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.