Chinas April exports bounce back more than expected despite trade dispute with US

China`s exports rebounded more strongly than expected in April after a surprise drop the previous month, suggesting global demand remains relatively resilient and providing a cushion to the economy amid a heated trade dispute with the United States. Imports in April also grew more robustly than expected, suggesting China`s domestic demand is holding up well, good news for policymakers looking to soften the blow from any trade shocks. The headline readings came as the world`s two largest economies have threatened each other with tens of billions of dollars` worth of tariffs in recent months, leading to worries that Washington and Beijing may engage in a full-scale trade war that could damage global growth and roil financial markets.

China`s April exports rose 12.9 percent from a year earlier, beating analysts` forecasts for a 6.3 percent increase and snapping back from a 2.7 percent drop in March, which economists believe was heavily distorted by seasonal factors. The heated row with Washington and threats of tit-for-tat punitive measures on trade and investment have added to existing concerns about an economic slowdown in China this year.

High-level discussions between the two sides in Beijing last week appeared to make little substantive progress in defusing tensions apart from an agreement to hold more talks. China`s top economic official will visit Washington next week to resume trade talks with the Trump administration, the White House said on Monday.

A Reuters report citing sources said China had offered to buy more U.S. goods and lower tariffs on some goods, including cars. The Trump administration has drawn a hard line, demanding a $200 billion cut in the Chinese trade surplus with the United States, sharply lower tariffs and advanced technology subsidies.

China`s trade surplus with the United States widened to $22.19 billion in April, from $15.43 billion in March, according to Reuters calculations based on customs data released on Tuesday. For January-April, it rose to $80.4 billion, compared with about $71 billion in the same period last year. China`s exports to the United States rose 13.9 percent in the first four months of 2018 from a year earlier, compared with a 14.8 percent rise in January-March. Its imports from the U.S. rose 11.6 percent in the same period.
STRONG IMPORTS

China`s April imports also showed strong growth overall, suggesting its domestic demand remains resilient despite rising corporate borrowing costs and cooling property investment.

Imports grew 21.5 percent on-year, beating analysts` forecast of 16 percent growth, and accelerating from a 14.4 percent rise in March. China`s imports of soybeans and crude oil rose in April from the previous month, though imports of iron ore and coal fell.

That left China with a trade surplus of $28.78 billion for the month, compared with forecasts for a $24.7 billion surplus in April and a rare deficit of $4.98 billion in March.
 

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That led to a wider surplus with the United States in January-April of $80.4 billion, according to China`s customs data. China`s trade surplus with the United States in April alone was $22.19 billion,