China's foreign trade gained significant momentum in May despite heightened uncertainty due to the Iran conflict.
Chinese exports rose by 19.4% year-on-year in US dollar terms, according to figures published by the customs authority in Beijing on Tuesday.
Imports increased by 27.4%. The trade surplus amounted to $105.4 billion.
These figures surpassed even the already strong results of the previous month. Foreign demand remains a crucial pillar of China's economy.
Exports are supported, among other things, by demand for electronics and technology products, such as those needed for the expansion of data centres.
Green technologies like electric vehicles, lithium-ion batteries and photovoltaic products are also among China's key exports. At the same time, companies abroad may have brought forward orders to protect themselves against potential supply chain disruptions.
For Beijing, this development provides a welcome boost at a difficult economic time. Domestic demand remains weak, the real estate crisis continues to weigh on the economy and parts of the industrial sector are suffering from overcapacity and price pressure.
Strong foreign trade can mitigate these problems, but it also contributes to tensions with trading partners who criticize China's export- and industry-driven growth model.
