Beijing, May 8 (Reuters) - China's import growth slowed
faster than expected in April, as inbound shipments of
commodities such as iron ore and copper weakened, while export
growth more than halved, in line with a general cooling in
demand for electronic gadgets.
China's April imports rose 11.9 percent, cooling from
March's 20.3 percent rise, official data showed on Monday, and
missing analysts' expectations for an 18 percent rise.
Exports rose 8.0 percent from a year earlier, slowing from a
16.4 percent rise in the previous month and short of
expectations of 10.4 percent.
While the data shows trade remained robust at the beginning
of the second quarter, analysts say the spurt in China's
economic growth seen in the first three months of the year may
be as good as it gets as policymakers seek to tighten
speculative investment, especially in the property sector.
Read also: China's economy likely to grow at 6.8%
"Looking ahead, we expect export growth to hold up well
given the relatively bright outlook for the global economy this
year," Capital Economics China economist Julian Evans-Pritchard
said in a note.
"Growth in inbound shipments will continue to face
headwinds, however. In particular, policy tightening will
further weigh on domestic demand in coming quarters."
April's numbers left the country with a trade surplus of
$38.05 billion, which compared with forecasts for $35.50
billion, and above $23.93 billion in March. The April trade
figures are preliminary, with revised data due on May 23.
China's imports of crude oil, iron ore and copper all fell
by volume compared with March, with the data in line with a
recent survey of purchasing managers in the manufacturing sector
showing April expansion was the slowest in six months.
Despite the slowdown, imports year-to-date are still up 20.8
percent by value, compared with 8.1 percent growth for exports
over the first four months, though analysts say imports could
slow further this year.
While China's economy grew faster than expected in the first
quarter, policymakers have moved to reduce financial risks in
the economy and stamp out speculative activity in the property
market.
Commodity imports have also been hit by falling prices, with
iron ore and steel hitting multi-month lows on China's future
markets in April amid concern over rising inventories. China's
producer price inflation slowed in March for the first time in
seven months, with price gains expected to continue to
cool.
Exports of electronics and machinery products increased 2
percent year-on-year in April, customs data showed, slowing from
12.3 percent growth in March.
FRICTION
China's surplus with the United States widened in April,
meaning pressure from the US for action on the trade imbalance
is not likely to go away anytime soon.
The surplus with the US was $21.34 billion in April, up
from $17.74 billion in March and higher than the year-ago
period, according to data from China's customs bureau.
Exports to the United States, China's largest export market,
rose 11.7 percent in April from a year earlier while imports
from the US rose 1.5 percent.
China's large trade surplus with the United States has drawn
criticism from US President Donald Trump.
While the US Treasury Department did not label China a
currency manipulator in its most recent report on currency
manipulation, the Trump administration has sought other fronts
in which to tackle its large trade deficit with Beijing.
Last month, Trump launched a trade probe against China and
other exporters of cheap steel into the US market.
And the US Commerce Department said last Tuesday it would
open investigations into possible dumping and subsidisation of
imports of tool chests and cabinets from China and Vietnam.
As Trump moves to put America's interest first and pull out
of multilateral trade agreements, China has positioned itself as
a supporter of free trade.
Finance leaders of Japan, China and South Korea last week
agreed to resist all forms of protectionism in a trilateral
meeting, taking a stronger stand than major G20 economies
against the protectionist policies advocated by Trump.
While trade friction between China and some key trading
partners remains, an overall improvement in global growth means
shipments from the world's largest exporter will likely remain
strong this year.
China's imports and exports are expected to stabilise and
improve in the near future, the Ministry of Commerce said last
week in its quarterly report on trends in the country's foreign
trade.
Foreign trade is expected to face a better environment in
2017 compared with the past two years, the commerce ministry
report said.