(Bloomberg) -- The unexpected rise in China’s April exports may have been aided by rising need overseas for medical goods, according to a report from a Chinese securities brokerage.
China’s exports grew 3.5% in April from a year earlier, but once increased medical goods trade are subtracted the rise may be only about 0.8%, Zhongtai Securities analysts Liang Zhonghua and Li Jun wrote in a Wechat post Thursday after the data release.
“China’s foreign trade is still under pressure, as new export orders remain at low levels,” the analysts wrote. Economic contractions in the U.S. and major countries may extend into the second quarter, and that “will further drag down China’s external demand.”
Exports of medical instruments and devices jumped more than 50% last month compared with a year ago, while shipments of textile yarns, fabrics and related products rose 49.4%. Chinese herbal medicine exports also increase 13.7%, they said.
China is a major exporter of protective medical equipment, accounting for 50% of world imports in 2018, according to a recent Peterson Institute for International Economics report.
China’s net exports of personal protective equipment dropped significantly in January and February as the nation exported less and imported more while battling the virus outbreak, according to the Peterson report. The net picture improved in March, although it was still below the level in 2019, the report said.
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