China’s trade data provide food for thought |
China’s exports rose by 19.4 percent in May from a year earlier, accelerating from April’s already impressive 14.1 percent growth. Imports grew even faster, jumping 27.4 percent after April’s 25.3 percent increase. Total trade expanded by 16.9 percent in yuan terms, pushing monthly trade above 4 trillion yuan ($587 billion) for the third consecutive month and bringing the cumulative trade growth for the first five months of the year to 15.3 percent.
Some Western critics have portrayed China as an economy dependent on “dumping overcapacity” with low value added. The data point to a different reality. The composition of the growth is even more notable than the quantity.
The strongest momentum is increasingly concentrated in technology-intensive sectors, including integrated circuits, advanced manufacturing equipment, electric vehicles and artificial intelligence-related products. Semiconductor exports reportedly surged by more than 100 percent year-on-year, while high-tech exports continued to outperform overall trade growth.
This is not merely a story about China exporting more goods. It is a story about China moving higher up the value chain at a time when much of........