China trade beats forecasts in April despite Mideast war

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BEIJING: China's trade performance in April surpassed expectations, demonstrating resilience against the economic disruptions caused by the ongoing war in the Middle East. 

According to the General Administration of Customs, exports grew by 14.1% year-on-year, significantly outperforming the 8.4% growth predicted by analysts. This surge marks a sharp recovery from the modest 2.5% increase seen in March.

A critical component of this growth was the reversal of declining exports to the United States, which rose by 11.3% in April after a steep 26.5% drop the previous month. This recovery in trans-Pacific trade comes just ahead of a high-stakes meeting between President Xi Jinping and Donald Trump.

Domestically, imports jumped 25.3%, signaling a potential strengthening in consumer spending despite a lingering property sector debt crisis. While the U.S.-led war with Iran has halted shipping through the Strait of Hormuz and spiked energy prices, analysts suggest China's diversified energy supply has provided a temporary cushion against these immediate shocks. 

With an annual growth target of 4.5-5.0%, these figures suggest the economy is currently on pace to meet its objectives.

Photo Credits: AFP