News analysis
Not even a month ago, reports of a first-quarter consumer-spending surge created much enthusiasm about China’s return to economic strength. News that this spending had pushed China’s real gross domestic product (GDP) well ahead of consensus expectations renewed talk that China would surpass the United States as the world’s largest economy.
Even then, a look behind the headline figures offered reason to doubt the enthusiasm. Now import-export news for April, the first month of the new spring quarter, confirms that skepticism.
Overall imports of goods and services from the rest of the world came in for April some 7.9 percent below year-ago levels, an especially remarkable comparison since then China was still under significant “zero-COVID” lockdowns. Imports from South Korea—considered a bell weather of future activity—fell a whopping 26.5 percent. Exports grew, something of a surprise given how weak the American and European markets are. However, at 8.5 percent above year-ago levels, they still exhibited a marked deceleration from March’s 14.8 percent advance….