After gaining 0.9 percent in April, China’s exports strengthened further in May, climbing 7 percent YoY to keep up with market growth projections of about 6.7 percent.
Imports, however, dropped 1.6 percent, according to data from the General Administration of Customs. Trade surplus, consequently, expanded to US$35.9 billion in May from US$18.5 billion in April.
The International Business Times attributed the exports uptick to “China’s support measures and improvement in the world economy, especially as the advanced economies are coming out of recession.”
For Fujian Aiyijia, the improving economy has opened up business with new customers. The company has been stimulating buyer interest by launching regularly new products.
Xiamen Aiditex, meanwhile, is strengthening ties with regular clients by offering on-time sampling and reliable quality.
Reuters said the increase in exports comes after a batch of factory surveys in May that showed improvement in activity as the government intensified targeted growth support measures.
In the same article, Reuters quoted customs office spokesman Zheng Yuesheng as saying that the numbers indicate that China’s “exports growth has returned to a normal level and will continue to improve.”
The 2013 comparison base was inflated by over-invoicing, the impact of which is now fading. China Money Network said the rebound in mainland China deliveries to ASEAN member countries, and Hong Kong and Taiwan reflect the last. Authorities initiated a crackdown on over-invoicing in May last year.
Slowing imports, however, are putting a damper on the outlook for the mainland’s economy. The Wall Street Journal, which forecast import growth at 6 percent based on a survey of analysts, asked several economists to weigh in on the slowing of imports and its impact on the economy.
Loui Kuijs of the Royal Bank of Scotland told the Journal that “Growth of normal imports–used in China’s economy–may remain subdued in the coming months because of subdued domestic demand and the overhang of a build-up of imported raw commodities.”
This article was originally published by Global Sources and can be found here. Global Sources is a leading business-to-business media company that facilitates trade between buyers worldwide and suppliers in China and Asia, via online, magazines, trade shows and research.