China says the "sky won't fall" amid rising exports ahead of Trump's tariffs
Kyiv • UNN
China's exports rose 12.4% in March due to US tariffs, imports fell 4.3%. The trade war affects markets and shipyards, and China is seeking support in Asia.
China's exports rose sharply last month amid a rush to ship goods before US President Donald Trump's tariffs sparked a full-blown trade war between the world's two largest economies, the Financial Times reports, writes UNN.
Details
According to China's customs administration, exports rose 12.4% in dollar terms in March compared to last year, well above expectations and the biggest increase since October. Imports fell by 4.3%.
The Trump administration had already imposed additional tariffs of 20% on China in March before a dramatic escalation in retaliation that saw the countries' tariffs on each other's goods exceed 100%.
The worsening trade war has hit international markets, boardrooms around the world and shipyards, which have been hit by order cancellations, the publication notes.
Last week, Washington suspended large-scale "mutual" tariffs on other trading partners while raising them on China, seeking to isolate Beijing, which retaliated on Friday by increasing its own measures to 125 percent, the publication notes.
Global stocks were set to recover on Monday after a sharp sell-off last week, with indices in China, Hong Kong and Japan rising, and futures on US and European markets pointing to gains later in the day.
"The sky will not fall," China's customs administration spokesman Lu Daliang said on Monday, according to state media. He pointed to "huge" domestic demand and echoed a wave of official comments stressing the country's resilience.
China's economy has relied heavily on exports to support growth over the past year amid a slowing property sector and weak domestic consumption that Beijing is trying to revive. Last week, the country's government rushed to support the domestic stock market.
On Friday, the US said duties on smartphones and other consumer electronics, as well as some semiconductors and chip-making equipment, would be exempted, but Trump said on Sunday that the postponement would be temporary.
Oil prices rose amid US tariff exemptions and China's import recovery14.04.25, 12:19 • 4152 views
While China's March data showed a jump in exports, economists are waiting for a different environment in the coming months in light of the trade war. Goldman Sachs last week cut its forecast for China's real GDP growth to 4 percent from 4.5 percent, citing a "sharp decline in exports to the US."
"We believe it could be years before Chinese exports recover to current levels," said Julian Evans-Pritchard, chief China economist at Capital Economics, adding that "there are already signs that supplies are being rerouted through third countries."
Exports to the US rose 4.5% in March. But it rose more sharply to Southeast Asia, increasing by 17% in Vietnam and 18% in Thailand. Both countries were targeted by high levels of US tariffs, which have since been suspended.
China's trade surplus with the United States, which Trump has repeatedly cited as justification for tariffs, was $76.6 billion in the first quarter.
Chinese leader Xi Jinping is visiting Vietnam, Malaysia and Cambodia this week, where he is seeking to strengthen ties and has warned that trade wars "will yield no winner." Last week, Xi hosted Spanish Prime Minister Pedro Sanchez in Beijing, the first major diplomatic meeting since the tariff hikes.
