Exports rise in April despite surge in tariffs

Despite Washington's hefty tariffs against Beijing kicking off early in April, China's exports surged by 9.3 percent year-on-year in the same month — a stronger-than-anticipated performance underpinned by the country's competitiveness and the effectiveness of its policies, analysts and executives said.

Though the uncertainty over whether the world's two largest economies can strike a deal to ease trade tensions may still be in place for some time, they said Chinese firms will enhance innovation capabilities and diversify their global market presence to weather the storms and emerge stronger.

China's total goods imports and exports, according to the General Administration of Customs, grew 5.6 percent from a year before to 3.84 trillion yuan ($529.8 billion) in April when the US escalated tariffs on Chinese goods to 145 percent starting April 9 — a move contrasting sharply with the 90-day tariff pause granted to dozens of other nations until July.

In the first four months, China's exports to the United States edged down 1.5 percent year-on-year. The United States forms only a part of China's total exports, and trade with the rest of the world has remained resilient.

China's exports to its biggest trade partner — the Association of Southeast Asian Nations — climbed 12.6 percent year-on-year in the January-April period, while trade with the European Union grew 6.1 percent from a year earlier, Customs data showed.

"Going forward, China will provide more support to export companies in exploring alternative markets beyond the US," said Feng Lin, senior analyst at Golden Credit Rating International. "Last year, markets outside the US accounted for 85.3 percent of China's total exports."

The reduced reliance on a single market, coupled with consistent efforts at technological innovation and product differentiation, will enhance the resilience of China's export sector, Feng said.

However, pressures will persist among Chinese foreign trade businesses as the adverse effect of US tariff hikes is brought to the fore in the coming months.

Top negotiators from Beijing and Washington have confirmed official trade talks over this weekend in Switzerland.

"China has prepared for the worst-case scenarios and unveiled on Wednesday a fresh financial stimulus package including interest rate cuts and liquidity injection to bolster growth," said Wen Bin, chief economist at China Minsheng Bank.

On the same day, the National Financial Regulatory Administration announced a range of initiatives to support enterprises severely affected by the US tariffs, including strengthening financial relief and boosting export stability.

"The current period is undoubtedly a challenging one for those in the foreign trade industry. The prolonged trade tensions with the US have equipped Chinese companies with a wealth of know-how in dealing with external shocks," said Chen Wenling, former chief economist at the China Center for International Economic Exchanges.

WOMA Sanitary Ware, a bathroom products manufacturer based in Guangdong province, has witnessed growth in European and Asian markets in the past months, particularly in demand for the company's elderly friendly bathtubs in Japan and South Korea, offsetting a slowdown in orders from the North American region.

"The global market is vast, and innovative products can help us open the doors to more markets," said Chen Yun, director of the company's foreign trade department.

wangkeju@chinadaily.com.cn