China trade surplus stood at $49.98 billion in May of 2016, down from $58.87 billion reported a year earlier and below market estimates.
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This happened as exports fell worse than expected while imports dropped much less than in a month earlier.
In May, exports declined by 4.1% year-on-year to $181.06 billion, following a 1.8% drop in the preceding month and market consensus of a 3.6% drop. Imports dropped by 0.4% to $131.08 billion while markets expected a 6.0% fall.
It is the 19th straight month of contraction, as a result of declining commodity prices and weak demand. In April 2016, the country registered a $45.56 billion trade surplus.
From January to May 2016, exports dropped by 7.3% from the same period a year earlier.
Outbound shipments declined for: Chinese herbal and medicine (-13,6%), coke and semi-coke (-36.7%), crude (-67.2%), refined oil (-7.1%), mineral fertilizer (-42.4%), clothing & accessories (-3.6%), footwear (-8.7%), ceramic (-13.5%), precious metals (-13.9%), steel (-22.4%), unwrought aluminium and aluminium (-18.2%), handheld wireless phone & its parts (-12.4%), automatic data processing equipment and parts (-14.5%), shipping (-25.0%), LCD panel (-17.0%), furniture & parts (-9.9%) and lamps, lighting fixture (-9.3%).
In contrast, Sales rose for: rice (+35.1%), coal & ignite (+49.1%), plastics (+0.9%), integrated circuit (+10.7%) and toys (+11.0%). Exports were down to: Hong Kong (-4.7%), Japan (-6.6%), South Korea (-8.7%), Taiwan (-10.7%), the ASEAN countries (-20.8%), the EU countries (-5.6%), Russia (-39.3%), South Africa (-11.8%), the US (-9.6%), Australia (-5.3%) and New Zealand (-7.7%). In contrast, outbound shipments rose to India (+2.5%).
Imports decreased by 10.3% year-on-year. Purchases from most of the country's trading partners declined except Hong Kong, Vietnam and Brazil. Those from India fell by 18.3%, followed by Japan (-5.1%), South Korea (-11.3%), Taiwan (-2.7%), the ASEAN countries (-14.0%) and the EU countries (-5.2%).
Purchases also dropped from the US (-12.8%), South Africa (-26.8%), Australia (-19.3%) and New Zealand (-0.2%). In contrast, imports rose from Hong Kong (+146.8%), Vietnam (+15.1%) and Brazil (+17.3%). ■
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