China economic outlook brightens as trade up, tensions down

14 April, 2017 12:00 AM printer

China economic outlook brightens 
as trade up, tensions down

A worker looks on as trucks transport shipping containers at a port in Lianyungang, east China's Jiangsu province on Thursday. Chinese exports surged 16.4 percent year-on-year to 180.6 billion USD in March, official data showed yesterday, in a sign of stabilisation for the world's second largest economy.

BEIJING: Chinese exports surged in March, the largest jump in two years, in the latest sign of robust global demand as concerns ease over a possible trade war with the US after President Donald Trump softened his stance on Beijing.

The new figures, released Thursday, boost hopes that the world's number two economy is getting back on track after a recent slowdown -- it grew last year at its slowest pace in a quarter of a century, reports AFP.

Trump, who had a cordial summit with Chinese President Xi Jinping last week, reversed course on an election campaign promise to label Beijing a currency manipulator and slap punitive tariffs on Chinese imports.

He traded in his acerbic denouncements of the Asian giant's "rape" of the US economy for warm praise, telling a press conference he was "very impressed" and shared "a very good chemistry" with Xi.

In a positive sign for the Chinese economy, exports jumped 16.4 percent year-on-year to $180.6 billion in March, the country's customs agency said, marking a dramatic turnaround from the 1.3 percent year-on-year drop recorded in February.

Imports also rose 20.3 percent year-on-year to $156.7 billion last month, Customs said, while the trade surplus increased to $23.9 billion.

A pickup in external demand, surging import prices, and a stable domestic economy boosted the figures, Customs spokesman Huang Songping told a press briefing on Thursday.

The March data "reflects strong domestic demand, particularly investment demand," Zhao Yang of Nomura said in a note.

"China has finally caught up with the rest of Asia with the end of the trade recession," Raymond Yeung of Australia & New Zealand Banking Group told Bloomberg News.

While recent data has suggested China's slowdown may be stabilising, the tough language deployed by Trump had raised concerns that growing friction between the world's two top traders could tank the global economy.

On the campaign trail, the billionaire politician frequently took Beijing to task for its business and fiscal policies, branding the country a currency manipulator and threatening to slap 45 percent tariffs on its imports.

China for years was accused of keeping its currency artificially low to make its exports cheaper and more competitive compared to US goods.

But in an interview published on Wednesday in The Wall Street Journal, Trump said: "They're not currency manipulators."

He added that Beijing had not been manipulating its currency for months -- a point economists have been making for a much longer time.