Chinese exports surge as companies dodge Trump tariffs
Chinese exports rose by over 12 per cent in March, just before the turbulence caused by Donald Trump's tariffs. According to CNBC, Chinese companies accelerated their shipments to avoid the prohibitive US tariffs. 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 per cent compared to the previous year, significantly exceeding analysts' forecasts. Reuters' estimates indicated an expected growth of 4.4 per cent. According to CNBC, this result is due to expedited shipments from China—exporters aimed to avoid the high tariffs imposed by the USA. On the other hand, imports to China fell by 4.3 per cent, 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 - ed.), warned on CNBC that in the coming months, Chinese exports might weaken due to the increasing US 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.
Nonetheless, Chinese authorities aim to achieve an economic growth rate of 5 per cent this year. In light of the escalating trade war with the USA—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 emphasises that the actions of the USA 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.
