China has rebounded from a weak end to the first quarter with a huge trade surplus in the first month of the second quarter as the country holds high-level economic talks with the U.S., according to Reuters. On Tuesday, the government reported that China posted a trade surplus of $11.4 billion in April, which is more than four times the increase that economists had expected. The trade surplus was a strong rebound from a rare deficit posted in the first quarter, with exports surging up 29.9% year-over-year while imports saw 21.8% annual growth.
The level of exports reached $155.7 in the larger-than-expected monthly increase, marking the highest level on record. The strong exports suggest to Tao Wang of UBS, Global demand is still pretty strong, although he questioned the strong of domestic demand. Xu Biao of China Merchants Bank said the lower-than-expected imports intensified concerns about an economic slowdown in the country. Meanwhile, Chinese leaders meeting in Washington with U.S. officials reached an agreement to open government business to U.S. companies in an effort to open its economy to international firms.