Chinese exports, imports beat forecasts but analysts wary

China on June 8 posted a forecast-busting surge in exports and imports in May, signaling improvement in the world's second largest economy, but there were warnings Beijing would struggle to maintain its momentum.

The readings will come as a relief after a series of weak readings suggesting a recent pick-up could be fizzling, while there are also lingering concerns about U.S. President Donald Trump's protectionist rhetoric.
Exports rose 8.7 percent on-year to $191 billion while imports jumped 14.8 percent to $150.2 billion.

The data were far better than the 7.2 percent rise in exports and 8.3 percent increase in imports predicted by analysts in a survey by Bloomberg News. The trade surplus rose to $40.8 billion, up $2 billion from April.

The news comes as the global economy also shows signs of strength.

However, Julian Evans-Pritchard, China economist at Capital Economics, said the government's efforts to rein in the country's ballooning debt could weigh on future trade data.

"Looking ahead, the current strength of imports is unlikely to be sustained if, as we expect, slower credit growth feeds through into weaker economic activity in the coming quarters," he warned.

"Exports growth is also likely to edge down further ahead but should fare better than imports given the relatively upbeat outlook for China's main trading partners," he said.

China had been showing signs of life in early in the year, fuelling hopes the world's top trader in goods and a key driver of global growth was stirring after a years-long growth slowdown.

However, other figures have pointed to slowing growth in the Chinese economy as it deals with weaker demand and excess industrial capacity left over from a debt-fuelled...