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China’s Trade Surplus Jumps 82% YoY in May, Topping Estimates
DATE: JUN 09 2022
China’s Trade Surplus Jumps 82% in May, Topping Estimates
(Yicai Global) June 9 -- China's trade surplus widened more than expected last month, surging 82 percent from a year earlier amid a recovery in the country’s supply chains and stronger overseas demand.
The trade surplus was USD78.8 billion in May, according to data released by the General Administration of Customs today. Chief economists polled by Yicai Global had predicted a figure of USD53.7 billion. The surplus with the United States widened 13.5 percent from a year ago to USD36.1 billion.
Exports also surpassed expectations, jumping nearly 17 percent to USD308.3 billion. The surveyed economists had foreseen a more modest 6 percent gain. Imports rose 4 percent to USD229.5 billion, versus a projection for an almost 1 percent increase.
Due to external factors, especially in Europe and the US, higher commodity prices have hindered the ability of overseas businesses to fully restart operations, Wei Jianguo, former commerce vice minister, told Yicai Global. So China-made goods will be in strong demand in the future, he added.
China’s foreign trade orders are expected to rebound in the next quarter as Shanghai resumes production after the city's two-month lockdown, according to Wei.
Given that rising raw material prices are a common challenge faced by all foreign trade companies in the world, China's institutional advantages will be further exerted, and government policies will be more effective in the near future, so this may be an opportunity for Chinese enterprises, according to Liang Ming, director of the Chinese Academy of International Trade and Economic Cooperation.
The gain in exports is showing up in business indicators, Zheng Houcheng, director of Yingda Securities' research institute, pointed out. The new orders sub-index of the JPMorgan Global Manufacturing Purchasing Managers' Index rose 0.4 point to 50.9 in May, indicating expanding global demand. And the Commodity Research Bureau Index rose as high as 52.46 percent last month as raw material prices jumped.
A depreciating Chinese yuan helped, according to Zheng. The redback weakened 0.96 percent against the US dollar in May from April. China's logistics and supply chains also recovered last month, bolstering exports, he added.
For the January to May period, imports of crude oil, coal, natural gas, and soybeans fell as prices soared. China bought 217 million tons of oil, down nearly 2 percent, as the average price jumped 56 percent to CNY4,463 (USD668) per ton. Coal imports fell 14 percent to 96 million tons as prices more than doubled to CNY1,018 a ton.
In the same period, China’s exports amounted to USD1.4 trillion, increasing by almost 14 percent. Imports climbed by nearly 7 percent to USD1.11 trillion. The trade surplus tallied USD290.46 billion, up 51 percent.
DATE: JUN 09 2022
China’s Trade Surplus Jumps 82% in May, Topping Estimates
(Yicai Global) June 9 -- China's trade surplus widened more than expected last month, surging 82 percent from a year earlier amid a recovery in the country’s supply chains and stronger overseas demand.
The trade surplus was USD78.8 billion in May, according to data released by the General Administration of Customs today. Chief economists polled by Yicai Global had predicted a figure of USD53.7 billion. The surplus with the United States widened 13.5 percent from a year ago to USD36.1 billion.
Exports also surpassed expectations, jumping nearly 17 percent to USD308.3 billion. The surveyed economists had foreseen a more modest 6 percent gain. Imports rose 4 percent to USD229.5 billion, versus a projection for an almost 1 percent increase.
Due to external factors, especially in Europe and the US, higher commodity prices have hindered the ability of overseas businesses to fully restart operations, Wei Jianguo, former commerce vice minister, told Yicai Global. So China-made goods will be in strong demand in the future, he added.
China’s foreign trade orders are expected to rebound in the next quarter as Shanghai resumes production after the city's two-month lockdown, according to Wei.
Given that rising raw material prices are a common challenge faced by all foreign trade companies in the world, China's institutional advantages will be further exerted, and government policies will be more effective in the near future, so this may be an opportunity for Chinese enterprises, according to Liang Ming, director of the Chinese Academy of International Trade and Economic Cooperation.
The gain in exports is showing up in business indicators, Zheng Houcheng, director of Yingda Securities' research institute, pointed out. The new orders sub-index of the JPMorgan Global Manufacturing Purchasing Managers' Index rose 0.4 point to 50.9 in May, indicating expanding global demand. And the Commodity Research Bureau Index rose as high as 52.46 percent last month as raw material prices jumped.
A depreciating Chinese yuan helped, according to Zheng. The redback weakened 0.96 percent against the US dollar in May from April. China's logistics and supply chains also recovered last month, bolstering exports, he added.
For the January to May period, imports of crude oil, coal, natural gas, and soybeans fell as prices soared. China bought 217 million tons of oil, down nearly 2 percent, as the average price jumped 56 percent to CNY4,463 (USD668) per ton. Coal imports fell 14 percent to 96 million tons as prices more than doubled to CNY1,018 a ton.
In the same period, China’s exports amounted to USD1.4 trillion, increasing by almost 14 percent. Imports climbed by nearly 7 percent to USD1.11 trillion. The trade surplus tallied USD290.46 billion, up 51 percent.
China’s Trade Surplus Jumps 82% in May, Topping Estimates
www.yicaiglobal.com
