Chinese export surge beats forecasts ahead of Trump tariffs
Chinese exports rose by over 12 percent in March, just before the turbulence caused by Donald Trump's tariffs. According to CNBC, Chinese companies intensified their early shipments to avoid the prohibitive tariffs imposed by the U.S. At the same time, imports to China fell. Beijing has an ambitious export goal for this year.
Chinese exports in March increased by as much as 12.4 percent compared to the previous year, significantly exceeding analysts' forecasts. Reuters estimated an expected growth of 4.4 percent. According to CNBC, this result is due to accelerated shipments from China, as exporters aimed to avoid the high tariffs imposed by the U.S. On the other hand, imports to China fell by 4.3 percent, indicating continued weak domestic consumption.
China: Exports surged just before Trump's tariffs
Zhiwei Zhang, an economist at Pinpoint Asset Management (a Chinese hedge fund management company based in Hong Kong), warned on CNBC that in the coming months, Chinese exports might weaken due to rising U.S. tariffs. He added that "in the short term, I expect chaos in supply chains and potential shortage in the U.S," which could drive inflation in the country.
Regardless, Chinese authorities aim to achieve an economic growth rate of 5 percent this year. In light of the escalating trade war with the U.S.—in response to which Beijing has applied retaliatory tariffs—this may prove to be an extremely challenging task.
Lingjun Wang of the Chinese customs administration emphasizes that the actions of the U.S. pose a challenge to global trade. China intends to continue opening its economy to trade cooperation with other countries while implementing retaliatory measures. Beijing has a significant number of non-trade retaliatory measures at its disposal, which could substantially impact the global economic situation.
