China’s trade picked up in April, with exports exceeding expectations, even as the Iran war and higher US tariffs continued to cast uncertainty over global markets.Official data released on Saturday showed Chinese exports rose 14.1% from a year earlier, significantly better than March’s 2.5% rise and the performance beat analyst forecasts. Imports also recorded strong gains, rising by 25.3%, although this was slightly lower than the 27.8% growth recorded the previous month.
The strong trade data comes just days before US President Donald Trump meets Chinese President Xi Jinping in Beijing next week, at a time when diplomatic priorities are increasingly being shaped by efforts to end the Iran war.The summit comes amid broader tensions between Washington and Beijing, where long-running disputes over trade sanctions, rare earth controls and US restrictions on Chinese technology are expected to be discussed.“We are expecting overall external demand to remain a solid driver of growth this year, likely led by China’s exports of semiconductors and autos,” said Lin Song, chief economist for Greater China at Dutch bank ING.China’s export sector has continued to support its broader economy, with shipments expanding in recent months, particularly to Europe, Southeast Asia, Latin America and Africa. In March, Beijing set its annual economic growth target at 4.5% to 5%, down from last year’s 5% pace and its most modest target since 1991.Although the Trump-Xi meeting is not expected to lead to sweeping changes on export controls, economists at HSBC said in a recent research note that the talks could still lead to “incremental” measures aimed at reducing trade tensions.“On balance, China has more leverage,” Leah Fahy, senior China economist at Capital Economics, wrote in a note. “But higher tariffs have not stopped China’s exports from growing last year, and Beijing has shown it is willing to wait out US pressure.”According to Wei Li, head of multi-asset investments at BNP Paribas Securities (China), the Iran war is also creating economic pressure for China by raising oil and fuel prices, increasing manufacturing and logistics costs for its industrial base. Rising inflation globally may also reduce spending power in China’s overseas consumer markets.So far, the country has weathered these pressures better than many economies, with the help of larger oil reserves and a more diverse energy supply network.