China: Trade tensions a lingering concern to the external outlook - ANZ

Betty Wang, analyst at ANZ, points out that the China’s better-than-expected exports in May, which could have been helped by a depreciation in the CNY and front-loading of shipments amid fears of higher US tariffs, do not change their overall cautious view on China’s export look for 2019.

Key Quotes

“The weakness in May imports was due to a decline in global oil prices, softness in major commodity imports as well as mechanical and electrical imports.”

“China’s soybean imports and rare earths exports declined y/y in May, pointing to the key areas that China may focus on as retaliatory measures against the US in the near term.”