China’s trade surplus reached a record high in May due to a surge in exports of medical supplies and as imports of commodities fell.
Exports decreased 3.3% in dollar terms from a year earlier, beating economists’ estimates, while imports declined 16.7% in May. That resulted in a record trade surplus of $62.93 billion U.S. The record surplus comes as the price for many of the commodities China buys such as crude oil, natural gas and soybeans fell.
On the flipside, exports have come off their lows, helped in part by sales of masks and other medical supplies as countries around the world try to halt the spread of COVID-19.
While China increased its commodities imports in May, the average price has fallen, according to a statement from the country’s Customs Bureau. The average purchase price of crude oil slumped 21.2% in yuan terms in the first five months of the year, although the volume of purchases rose 5.2%, it said. The price for coal, natural gas, soybean and other commodities also decreased. The value of automotive imports contracted by 31.3% in the month.
Meanwhile, Chinese exports of textile products including masks jumped 25.5% in yuan terms in the first five months of the year, the second-largest export item after mechanical products, according to the Customs Bureau.
Exports to the U.S. fell 1.2% from a year earlier, while those to India slumped 51% and exports to Brazil were down 26% amid those countries’ battle to stem the spread of COVID-19. Imports declined 13.5% from the U.S., 43.5% from Hong Kong and 29% from the European Union.
