Firmer global demand helps Chinese exports rise in May

China’s exports gained steam in May thanks to firmer global demand, but an unexpected fall in imports signalled weaker domestic demand that could continue to weigh on the world’s second-largest economy.

Exports rose 7% in May from a year earlier, quickening from April’s 0.9% rise, while imports fell 1.6%, versus a rise of 0.8% in April, the General Administration of Customs said. China’s trade surplus widened sharply to $35.9bn, last month, from April’s $18.5bn, the customs office also said.

“We do not think the May trade data will change the policy stance significantly,” Louis Kuijs, an RBS economist in Hong Kong, said in a note.