China’s trade surplus hit a monthly high in May. The surplus is on pace to surpass last year’s record.
May exports jumped 25.1% from a year earlier to $73.11 billion, picking up from a 23.9% increase in April, according to customs figures issued yesterday. Imports rose a more modest 21.7%. The trade surplus, the excess of exports over imports, surged to $13 billion for the month, 44% higher than in May of last year.
Low-tech, labor-intensive goods like footwear and toys haven’t been great performers this year, but China’s booming electronics sector and its growing prowess in heavy manufacturing have more than made up the difference.
Exports of mobile phones, television sets, integrated circuits, automotive parts, and ships were all up by more than 40% for the year to April, according to Ministry of Commerce figures.
Analysts said while export sales may slow later this year as the global economy cools after a long run of growth, China is still on track to surpass last year’s record annual surplus of $101.88 billion.
Jonathan Anderson, chief Asian economist for UBS, said the momentum of exports could fan Chinese officials’ concerns about the fast-growing economy and encourage them to take tightening measures, such as allowing a gradual increase in the value of the yuan.
Signs that inflation is picking up could contribute to those worries.
Critics said one factor in China’s swelling surplus is it keeps its currency artificially low, making its exports less expensive. Yet other Western firms are eager to tap China’s advantages as a manufacturing location: Foreign companies make more than half the country’s exports.