China's exports unexpectedly returned to growth in May despite higher U.S. tariffs, but imports fell the most in nearly three years in a further sign of weak domestic demand that could prompt Beijing to step up stimulus measures.
While China is not as dependent on exports as in the past, they still account for nearly a fifth of its gross domestic product.
Trade tensions between Washington and Beijing escalated sharply last month after the Trump administration accused China of having "Reneged" on promises to make structural changes to its economic practices.
Trade sanctions are spreading from goods to services, Capital Economics noted last week, with China issuing a warning to citizens about risks of traveling in the United States and U.S. lawmakers pushing to tighten visas for Chinese students.
For January-May, China's total exports rose just 0.4% from a year earlier, while imports declined 3.7%.MORE SUPPORT MEASURES EXPECTED. As trade pressures intensify, analysts believe China will loosen policy further in months ahead to shore up economic growth.
Analysts do not expect a surprise devaluation from China like one in 2015, which could risk capital outflows and further angering Washington, but some believe more yuan weakness is inevitable if the trade war drags on.
Citing heightened trade uncertainties, the International Monetary Fund last week cut its 2019 economic growth forecast for China to 6.2%, which would mark the country's weakest expansion in 29 years.
https://www.reuters.com/article/us-china-economy-trade/china-exports-grow-despite-u-s-tariffs-but-import-slump-most-in-nearly-three-years-idUSKCN1TB040
While China is not as dependent on exports as in the past, they still account for nearly a fifth of its gross domestic product.
Trade tensions between Washington and Beijing escalated sharply last month after the Trump administration accused China of having "Reneged" on promises to make structural changes to its economic practices.
Trade sanctions are spreading from goods to services, Capital Economics noted last week, with China issuing a warning to citizens about risks of traveling in the United States and U.S. lawmakers pushing to tighten visas for Chinese students.
For January-May, China's total exports rose just 0.4% from a year earlier, while imports declined 3.7%.MORE SUPPORT MEASURES EXPECTED. As trade pressures intensify, analysts believe China will loosen policy further in months ahead to shore up economic growth.
Analysts do not expect a surprise devaluation from China like one in 2015, which could risk capital outflows and further angering Washington, but some believe more yuan weakness is inevitable if the trade war drags on.
Citing heightened trade uncertainties, the International Monetary Fund last week cut its 2019 economic growth forecast for China to 6.2%, which would mark the country's weakest expansion in 29 years.
https://www.reuters.com/article/us-china-economy-trade/china-exports-grow-despite-u-s-tariffs-but-import-slump-most-in-nearly-three-years-idUSKCN1TB040
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