China's exports grew more quickly and for a second month in May, suggesting factory owners are managing to find buyers overseas and providing some relief to the economy as it battles to mount a durable recovery.
The jury is still out, however, on whether the export sales are sustainable while a protracted property crisis has led to persistent weakness in domestic demand - a factor highlighted again in last month's imports figures.
"China's exports maintained strong year-to-date growth momentum in May, which mainly reflects the continuing large global market share of Chinese goods and renminbi (yuan) exchange advantage, as well as exporters shipping early ahead of tariff increases in export markets," said Bruce Pang, chief China economist at Jones Lang LaSalle.
Outbound shipments from the world's second-largest economy grew 7.6% year-on-year in value in May, customs data showed on Friday.
But imports increased at a slower 1.8% pace, from a 8.4% jump in the previous month, highlighting the fragility of domestic consumption.
The export figure beat a forecast 6.0% increase in a Reuters poll of economists and a 1.5% rise seen in April, though growth was likely also aided by a lower base of comparison, after rising interest rates and inflation in the US and Europe squeezed external demand in the previous year.
Over recent months, a flurry of data has shown different parts of the $18.6 trillion economy recovering at varying speeds, heightening uncertainty about the outlook.
While first quarter growth blew past forecasts and strong March export and output data suggested improving global demand might aid officials' efforts to get the economy back on an even keel, more recent indicators reflecting soft domestic consumption have eroded much of that earlier optimism.
Depressed domestic demand
Indeed, separate data for May on commodities imports also released on Friday highlighted a mixed picture of demand conditions at home, with purchases of crude oil and soybeans down year-on-year, while copper and iron ore saw a solid uptick.
A protracted property sector crisis remains the biggest drag on China's economy, with low investor and consumer confidence hurting domestic consumption and undermining business activity.
However, Friday's trade data should give authorities some breathing space as they continue their efforts to foster a broad-based economic recovery.
Analysts expect China to roll-out more policy support measures in the short term, while a government pledge to boost fiscal stimulus is seen helping shore up domestic demand.
The International Monetary Fund last month upgraded its China growth forecast for 2024 in line with Beijing's growth target of "around" 5%, but warned of risks to the economy from the property sector troubles.
China's stocks slipped as the better export numbers were eclipsed by a report that US lawmakers pushed to ban Chinese battery firms with ties to Ford and Volkswagen from exporting to the US.
