BEIJING – China’s exports rebounded strongly in May, data shows today, with factories restarting and supply chains untangling as Shanghai slowly emerged from a gruelling lockdown.
The city of 25 million underwent a stuttered lockdown from late March and was then fully sealed off for around two months, as China tightly adheres to a zero-Covid-19 approach to fight the outbreak.
Strict movement restrictions across multiple cities – sometimes over just handfuls of cases – kept consumers at home and battered the economy, dragging retail sales, factory output and export growth to their lowest levels in about two years.
But as restrictions have eased, overseas shipments from the world’s second-biggest economy bounced back 16.9% on-year in May, up from 3.9% in April, according to customs data released today.
Analysts polled by Bloomberg had expected a 7.6% spike.
However observers have warned that the rebound could be short-lived.
“Extensive disruptions in the Yangtze River Delta in the past couple of months and Beijing’s determination to carry on with its zero-Covid-19 strategy may cause some foreign customers to shift their orders to... neighbouring countries,” Nomura analysts said in a recent note.
Imports rose 4.1% last month, according to customs data, also beating expectations.
China’s trade surplus was around US$79 billion (around RM347 billion) last month, up from US$51 billion in April, the customs administration said in a statement. – AFP, June 9, 2022
