China’s commerce with the US and Australia grew regardless of tensions in April

Containers sit in the port of Yangshan in Shanghai, China on August 6, 2019.

Aly Song | Reuters

BEIJING – China’s exports rose faster than expected in April as global demand for Chinese goods remained high in countries through the various stages of dealing with the coronavirus pandemic.

Exports denominated in US dollars rose 32.3% year over year in April, Chinese customs officials said on Friday. This exceeded an estimate of 24.1% by the analysts polled by Reuters.

Imports rose 43.1% in US dollars and also exceeded expectations of 42.5% growth, according to a survey by Reuters.

Exports were boosted by demand for electronics and high-tech products, while China bought more integrated circuits due to US sanctions and a global chip shortage.

“The outlook for Chinese exports is positive,” said Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, in a statement on Friday. He expects Europe and Japan to watch the US economy recover once vaccination rates rise.

Chinese trade with key partners grew despite political tensions. During the administration of US President Donald Trump, China and the US imposed tariffs on goods worth billions of dollars. Tensions between China and Australia worsened Thursday after Beijing suspended high-level economic dialogue between the two countries.

In April, US exports rose 31% year over year to $ 42.05 billion. US imports rose 52% to $ 13.94 billion.

Capurso attributed the improvement in trade between the US and China to major fiscal stimulus in the US under President Joe Biden.

“The rebound in US-China trade has reversed much of the trade war slump, although few trade restrictions have been lifted,” he said.

He noted that despite restrictions, China has also bought Australian products, mostly for agricultural produce.

“Although product details are not available, we speculate that the rise in commodity prices is responsible for both the expansion of Chinese imports from Australia and China’s trade deficit with Australia,” said Capurso.

Chinese imports from Australia rose 49% to $ 14.87 billion in April, while exports rose 20% to $ 5.25 billion.

Exports to the EU rose 24% to $ 39.92 billion, while imports rose 43% to $ 26.79 billion.