The pace of Chinese trade accelerated in April, with exports rising beyond expectations even as the Iran war and high US tariffs continue to create uncertainty over global markets.Official data released on Saturday showed that Chinese exports rose 14.1% from a year earlier, a big jump from March’s 2.5% rise and a performance that beat analysts’ expectations. Imports also recorded strong gains, increasing by 25.3%, although this was slightly lower than the growth recorded in the previous month of 27.8%.
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These stronger trade numbers come just days before US President Donald Trump is scheduled to meet with Chinese President Xi Jinping in Beijing next week, at a time when diplomatic priorities are increasingly shaped by efforts to end the Iran war.The summit comes amid broader tensions between Washington and Beijing, with long-standing disagreements over trade restrictions, rare earth controls and US restrictions on Chinese technology expected to remain under discussion.“We expect overall external demand to remain a strong driver of growth this year,” which will likely be led by China’s exports of semiconductors and automobiles, said Lin Song, chief economist for Greater China at Dutch bank ING.
China’s export sector continues to support its broader economy, especially with shipments to Europe, Southeast Asia, Latin America and Africa expanding in recent months. In March, Beijing set its annual economic growth target at 4.5% to 5%, below last year’s pace of 5% and the most modest target since 1991.Although sweeping changes to export controls are not expected at the Trump-Xi meeting, economists at HSBC said in a recent research note that the talks could still yield “additional” measures aimed at easing trade tensions.“Overall, China appears to have more influence,” Leah Fahey, chief China economist at Capital Economics, wrote in a note. “But high tariffs did not prevent China’s exports from continuing to rise over the past year, and Beijing has shown that it is willing to wait out US pressure.”The Iran war is also creating economic pressure on China by raising oil and fuel prices, and increasing manufacturing and logistics costs for its industrial base, according to Wei Li, head of multi-asset investments at BNP Paribas Securities (China). High global inflation could also reduce purchasing power in China’s foreign consumer markets.So far, the country has been able to withstand these pressures better than many economies, thanks to large oil reserves and a more diverse energy supply network.