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| China's export show remarkable growth potential driven by stronger global competitiveness of Chinese goods in the past 5 months |
China's exports have shown remarkable resilience and growth potential, driven by stronger global competitiveness of Chinese goods and improved external demand, according to experts from several foreign-invested financial institutions.
"Chinese exporters have been performing well, regardless of month-to-month fluctuations," said Taimur Baig, chief economist and managing director of DBS Group Research. He noted that exports have supported the ongoing recovery of China's economy.
In May, China's exports increased by 11.2% year-on-year in yuan terms and by 7.6% in U.S. dollar terms compared to a year earlier, both showing faster growth than in April, according to the latest data from the General Administration of Customs.
Data indicates that China's exports to both developed economies and emerging markets, including the United States, the European Union (EU), ASEAN, and Brazil, improved in May compared to the previous month.
Zhu Haibin, chief China economist at J.P. Morgan, noted that China's efforts to diversify its export destinations in recent years have been successful.
While China's export destinations were once predominantly developed economies like the United States, the EU, and Japan, the share of exports to emerging economies, including Latin America, Africa, and ASEAN, has been increasing in recent years.
Xiong Yi, chief China economist at Deutsche Bank, attributed the better-than-expected May export performance largely to exports to ASEAN and Latin America.
Regarding export structure, high-end, smart, and green products have maintained strong growth momentum. In the first five months of the year, machinery and electronic products, typically considered high-tech and high value-added, accounted for nearly 60% of total exports.
During this period, exports of ships, electric vehicles (EVs), and household appliances increased by 100.1%, 26.3%, and 17.8% year-on-year, respectively.
Ji Mo, chief China economist of DBS Group Research, noted that the rebound in global demand for electronics has boosted China's exports.
Zhu pointed out that the diversification of China's export products, such as EVs, solar panels, and lithium batteries, has also significantly contributed to export growth. He added that rising inflation and labor costs in Europe and the United States have further enhanced the competitiveness of Chinese products.
Experts are optimistic about the future of China's exports, predicting that the growth momentum will continue in the coming months.
Wang Tao, chief China economist and head of Asia Economic Research at UBS, stated, "Continued solid trade activity in China's neighboring economies indicates a steady recovery in external demand."
Lu Ting, chief China economist at Nomura, estimated that China's export growth might increase further this month and remain high over the next few months. He noted that due to the price competitiveness of Chinese goods and the low base effect, Nomura raised its 2024 China export growth forecast by 0.7 percentage points earlier this month.
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