China exports grow by 7.6% in May, but looming US, EU tariffs cast a pall

BEIJING China sold more of its goods such as cars, semiconductors and household appliances to the world in May, ahead of impending tariffs that could temper hopes for outbound trade to power its economy.

- Joyce ZK Lim

China's exports grew 7.6 per cent year on year to US$302.35 million (S$408.5 million), according to customs data released on June 7.

This surpassed economists' median forecasts of 6 per cent in a Reuters poll, and vastly improved on April's 1.5 per cent growth, as well as May 2023's performance, which saw a 7.5 per cent year-onyear contraction.

Exports are expected to be a growth engine in 2024 for China, which has set a gross domestic product target of 5 per cent.

May's strong showing notwithstanding, headwinds are likely with stiffer tariffs on the horizon for a range of Chinese exports, said ING Bank chief China economist Lynn Song.

Acting against a proliferation of low-cost Chinese goods said to be disadvantaging their manufacturers, the US will hike tariffs on Chinese exports including electric vehicles (EVs), lithium-ion batteries, steel and aluminium from August, while the European Union will soon announce the results of a probe that could raise levies on Chinese EVs.