Chinese customs data on Monday revealed that imports to the world’s second-largest economy skyrocketed at the fastest pace in more than a decade in May, largely driven by increased demand for raw materials amid a backdrop of economic growth. easing of pandemic restrictions coupled with a reopening of major economies, including the EU and the United States, although China’s export growth has lost momentum and largely missed analysts’ estimates due to disruptions resulting from ” a resurgence of pandemic cases in the main ports of the South.
In fact, although a rapid economic recovery in developed countries has appeared to have bolstered demand for Chinese products, a series of negative stimulus measures ranging from a global semiconductor shortage to raw material and freight costs. higher prices by going through a congested supply chain alongside a stronger Yuan, had apparently weakened prospects for exporters in the world’s largest exporting economy.
Chinese imports increase in May, exports slow more than expected
According to Chinese customs data released earlier Monday, Chinese exports in US dollars rose 27.9% last month from the same period a year earlier, below an April reading of 32.3 % growth, missing analysts’ estimate of 32.1%..
On the contrary, Chinese imports climbed about 51.1 percent in May in terms of US dollars on an annual basis, marking the strongest monthly growth since January 2011, however, hovered just a notch below. analysts estimate a 51.5% increase, mainly due to a sharp rise in commodity prices amid growing demand for commodities such as coal, iron ore, copper and steel.
Meanwhile, referring to a surprise resurgence of pandemic cases in southern port cities that appeared to be wreaking havoc on flexible chains, a chief economist at Pinpoint Asset Management, Zhiwei Zhang said after the announcement, “Exports surprised a little on the downside, possibly due to COVID cases in Guangdong province which slowed turnover at the ports of Shenzhen and Guangzhou”.