BEIJING: China’s export performance surpassed expectations in April, despite a significant decline in shipments to the United States following the imposition of aggressive new tariffs by the Biden administration. The latest trade data offer an early snapshot of the shifting global trade landscape as tensions between the world’s two largest economies intensify.
According to figures released by China’s General Administration of Customs on Friday, total exports rose by 8.1% year-on-year, significantly above economists’ forecast of a 2% increase. Imports, however, edged down by 0.2%, resulting in a robust trade surplus of US$96 billion (RM414.03 billion).
The headline growth in exports masks stark divergences in regional performance. Shipments to the US plunged by 21% year-on-year following the early April rollout of tariffs exceeding 100% on a wide range of Chinese goods. In contrast, exports to Southeast Asian nations within the ASEAN bloc surged 21%, while those to the European Union climbed 8%, underscoring China’s accelerating pivot towards other key markets.
China’s own retaliatory tariffs led to a 14% drop in imports from the US during the same period, further reflecting the deepening disruption in bilateral trade flows.
The April data provide the first official insight into the tangible effects of the latest escalation in trade tensions, though analysts warn that the full economic impact may not become apparent until the coming months. Many experts predict that, barring a de-escalation, trade volumes between China and the US — which reached nearly US$690 billion in 2024 — could shrink dramatically, with widespread implications for global supply chains and pricing pressures on businesses and consumers alike.
Efforts to defuse the standoff are set to resume this weekend, as US and Chinese officials convene for the first round of high-level trade talks since President Trump’s departure and President Biden’s administration adopted a more assertive trade stance. US Treasury Secretary Scott Bessent, who has described the current tariff regime as “unsustainable,” will lead the American delegation in discussions with a Chinese team headed by Vice Premier He Lifeng.
Despite hopes from the business community that progress can be made, both sides have reiterated firm negotiating positions. President Biden recently ruled out lowering tariffs as a precondition for broader dialogue, while Beijing maintains that any resolution must begin with a full rollback of existing duties.
With the talks scheduled to begin on Saturday, markets and industry stakeholders will be closely monitoring for any signs of compromise — though expectations for a breakthrough remain muted.
–Bloomberg
