MNI 5 Things: Exports See Large Increase, Surplus Expands

By Flora Guo

     BEIJING (MNI) - China's General Administration of Customs announced the

latest trade statistics on Thursday. Below are five things we learnt from the

release:

     - Exports surprise by beating the market consensus, increasing at 44.5%

y/y, compared with MNI's survey of 12.7% growth - this marks the 12th

consecutive month of growth, and is the highest growth recorded since February

2015. Total exports, on the other hand, are down 14.5% m/m, in line with

historical data (mentioned in Wednesday's "MNI 5 THINGS: China Feb Trade May

Show Deficit, Lower Imports"). 

     - Trade balance expanded to USD33.74 billion from January's USD20.57

billion, the second largest surplus in February in the last decade - instead of

the deficit predicted by analysts surveyed. 

     - Imports growth eased to 6.3% y/y from a previous 11-month high of 36.8%

y/y, to USD137.88 billion. This downturn momentum was reflected in the MNI

survey, which showed imports growth at 9.3%.  

     - Trade with the EU, the U.S., ASEAN and Japan, which in total account for

nearly half of China's trade, have all increased, by 17.2%, 15.8%, 22.7% and

6.1% respectively. Trade with countries aligned with the Belt and Road

Initiative stands at CNY1.26 trillion, rising 21.9% - 5.2 percentage points

higher than the average growth of China's trade. 

     - Trade with the U.S. amounted to USD95.87 billion in the first two months.

Exports to the U.S. rose by 26.6% y/y while imports rose 12.0% y/y. The U.S. is

therefore still one of China's most important trade partners. "The competition

between China and the U.S., if there is one, should be benign and

active...competition is allowed, but partnership is more necessary," said Wang

Yi, minister of China Foreign Ministry at Thursday's press conference, in

response to concerns of a trade war. "The trade war will only result in injury

to both sides, and China will need to respond accordingly," Wang also warned. 

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: beijing@mni-news.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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