China’s exports to the US increased the most in 5 years

On June 9, China’s General Administration of Customs said that total export turnover in May increased by 19.4% and imports by more than 27% over the same period last year. Both figures are higher than April and stronger than economists’ forecasts in our survey Reuters. The trade surplus in May therefore also increased to 105.4 billion USD.

Particularly for the US market, exports increased by 35.4% compared to last year. This is the highest speed since March 2021, according to research firm Wind Information. US-China trade is still recovering, after falling at a double-digit rate for much of last year due to pressure from import tariffs.

Above China Dailyexperts believe that the cooling of trade tensions between the two countries after US President Donald Trump’s visit to China in mid-May could reduce instability with Beijing’s exports, as well as US businesses.

“Cooperation with the US helps reduce external instability with China, thereby significantly contributing to maintaining economic stability, and vice versa,” said Zhu Min – former Deputy Director General of the International Monetary Fund (IMF).

US import taxes on Chinese goods are currently at a general level of 10%, after the Supreme Court rejected the tariffs that President Donald Trump imposed under the International Emergency Economic Powers Act (IEEPA) at the end of February. However, taxes imposed under other laws for each industry such as aluminum, steel, and cars remain the same at 10-50%.

In May, China’s exports were driven by global demand for high-tech products. This demand is expected to remain strong in the second half of the year, thereby creating necessary support for the country’s economic growth.

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Xing said Chinese enterprises have built “core competitiveness” in printed circuit boards (PCBs), optical components and memory chips, thereby benefiting from the growth momentum of the AI ​​hardware sector. According to the China Chamber of Commerce of Import and Export of Machinery and Electronic Products, in the first four months of the year, integrated circuit (IC) export volume increased by 10.6%, while export value increased by 78.3%.

In the energy sector, Xing said large-scale AI data centers require huge amounts of power. China currently has a “leading position” in the global energy transition, from wind and solar power components to grid equipment and energy storage batteries.

According to China’s General Administration of Customs, in the first 4 months of the year, electric vehicle exports increased by 68.1% over the same period last year. Lithium battery exports increased by 43.2%, wind power generation equipment increased by 40.7%.