Weekend Long Read: Will China Fulfill Its Key Climate Pledge?

Defiant export growth: China’s goods exports in dollar terms rose 8.1% year-on-year in April, customs data show, despite the Trump administration’s sweeping import tariffs on Chinese goods taking effect on April 9. Shipments to the U.S., however, fell by around 21%, according to General Administration of Customs data released Friday. Export growth accelerated to re-export destinations such as Southeast Asia, while slowing to the EU. Imports fell 0.2% in April, producing a trade surplus of $96.2 billion for the month. April’s trade performance beat market expectations, with foreign and local economists predicting an average of 2.5% growth in exports and a 5.6% decline in imports.

Elderly care finance: China’s central bank has issued detailed rules for a newly announced 500-billion-yuan ($69 billion) relending facility designed to stimulate service consumption and support elderly care. The program provides one-year loans at an interest rate of 1.5% to 26 major financial institutions — including state-owned banks and systemically important city banks — with the option for two extensions and a maximum term of three years. The funds are intended to support lending to sectors such as hospitality, entertainment, education and elderly care. Participating banks will handle loan approvals and bear the associated risks while being eligible to apply for central bank refinancing on a quarterly basis. The new tool expands on a 2022 pilot program for inclusive elderly care lending, offering a larger quota, broader sector coverage and lower interest rates. Experts said it reflects China’s growing focus on rebalancing the economy by addressing weak service-sector demand.

Drone makers go global: China’s agricultural drone manufacturers are rapidly expanding into overseas markets. Guangzhou-based XAG has announced a joint product launch with global farming machinery giant CNH Industrial N.V. at Brazil’s top agricultural expo. The co-branded drones, already sold in China, will debut in Brazil as XAG’s first smart farming equipment tailored for Latin America. XAG said the partnership will allow its products to enter CNH’s global sales network, boosting distribution and service efficiency in the region, where reliable after-sales support is crucial during peak farming seasons. Its main domestic rival, DJI Agriculture, has also seen rapid export growth since 2017, with overseas units making up 30% of its drone sales in 2024. Both firms have tapped into partnerships with major agrochemical and machinery players — such as Bayer AG and Kubota Corp. — to speed up their global expansion.

Hot tea stock: Chinese bubble-tea chain Auntea Jenny surged as much as 75% during its debut on the Hong Kong Stock Exchange on Thursday. The stock ended the day up 40% from its IPO price, valuing the teamaker at HK$16.2 billion ($2.1 billion). Investors were falling over each other to get a piece of the deal, with Hong Kong retail accounts oversubscribing their 10% portion of the HK$273 million IPO by more than 3,600 times. The sky-high demand saw the final allocation of shares split equally between institutional and retail investors. Auntea Jenny’s stellar first-day performance follows a trend among listings by Chinese beverage companies this year, including its larger peer Mixue Group, which leapt more than 43% on its debut in March. The soaring demand is seen not only as a sign of confidence in the Chinese beverage sector but also the result of strong capital inflows from international and Chinese mainland-based funds this year.

Critical minerals shortage: China’s recent export controls on critical minerals have triggered global supply shortages and price surges, prompting foreign companies to hoard inventory and scramble for export licenses. Beijing added five metals — tungsten, tellurium, bismuth, molybdenum and indium — used in the semiconductor and defense industries to its dual-use export control list in February. The move, justified on national security grounds, followed the addition of other critical minerals including antimony late last year. These restrictions have accelerated the development of alternative supply chains given China’s dominant position in the rare earth market, accounting for 69% of global supply in 2024, according to the U.S. Geological Survey. The international price of antimony, a metal widely used in the electronics industry, surged 115% from September through May 7 to $58,000 per ton. China supplied 60% of the world’s antimony last year.