China’s imports jump 8.4% in April, exceeding expectations as purchases from the U.S. grow

Chinese imports from the U.S., European Union and Russia rose last month, despite a drop in exports to all three, according to CNBC calculations of official data.

Worldwide, China’s exports rose by 1.5% year-on-year in April in U.S. dollar terms, while imports climbed by 8.4%, the data showed.

Exports were expected to have grown by 1.5% year-on-year, and imports up by 4.8% from a year ago, according to a Reuters poll.

In March, exports and imports both fell year-on-year.

China’s imports from the U.S. climbed by 9% in April from a year ago, while exports dropped by nearly 3%.

The U.S. remains China’s largest trading partner on a single-country basis, while the Association of Southeast Asian Nations is China’s largest trading partner on a regional basis.

China’s exports to ASEAN rose by 8% in April from a year ago, while imports rose by 5%.

China’s exports to the EU fell by about 3.5% while imports rose by nearly 2.5%

The data showed an increase in exports and imports to Vietnam, but did not break out such data for Mexico.

In April, China’s imports and exports of integrated circuits rose from a year ago, the data showed.

By volume, China’s exports of cars, LCD panel displays and home appliances rose, while exports of cellphones fell slightly. Exports of ships also dropped.

China’s imports of crude oil and natural gas rose, as did that of steel, plastics, medicines and automatic data processing machines and parts. Imports of cosmetics dropped.

Lackluster domestic demand has weighed on imports, while exports have come under some pressure due to slowing global demand and tensions with China’s largest trading partner, the U.S.

The Biden administration has called for tripling tariffs on Chinese steel. Former President Donald Trump has said he would raise tariffs by 60% on Chinese goods if reelected this fall.

The Covid-19 pandemic also prompted multinational corporations to diversify their supply chains away from just relying on China.

However, Nomura analysts pointed out in a report earlier this month that much of the diverted trade likely still has its origins in China, or Chinese-invested factories in other countries.

“Excluding China, the US trade deficit with the rest of the world has continued to increase and is near a record high,” the report said.

“If America truly wants to reduce its trade deficit through tariffs, it needs to increase tariffs on all US imports,” the report said. “Trump’s recent idea of a 10% ‘ring around the country’ should not be dismissed lightly.”