Kathmandu. China’s exports rose stronger-than-expected in May, amid mounting pressure on global trade and supply chains from the Middle East.

Exports from China, the world’s second-largest economy, rose 19.4 percent from the same period last year, according to government data released today, beating market estimates.

China’s Customs Administration (GAC) said exports in May rose to 19.4 percent from 14.1 percent in April. Economists polled by Bloomberg had forecast a 15 percent increase. The actual figure is significantly higher than that estimate.

At the same time, China’s imports were also strong. Imports rose 27.4 percent year-on-year in May. This growth rate is also higher than Bloomberg’s forecast of 26 percent. The strong expansion in both imports and exports indicates that external trade is an even more important support for China’s economy.

Exports to the United States, in particular, have increased significantly. China’s exports to the U.S. rose 35.4 percent year-on-year, with trade relations a major agenda during President Donald Trump’s visit to Beijing, according to the GAC.

China’s exports to the United States reached $39 billion in May, according to the data. It was $28.8 billion in the same month last year. At that time, the trade policy of the Trump administration had put pressure on trade relations between the two countries.

The increase in exports is seen as a positive sign for China’s economy. China has long sought to shift its growth model based on production and exports to domestic consumption. However, external trade is still the main pillar of the economy as domestic demand has not been as strong as expected.

However, challenges remain. Weak domestic demand, rising energy costs due to the Middle East conflict and disruptions to international shipping are putting pressure on economic activity. After a two-month extension, activity in China’s manufacturing sector almost stagnated in May, official data showed.

As the price of raw materials related to the energy and chemical industries rises, the cost of production of factories is also increasing. Analysts say the manufacturing sector is facing more challenges due to supply chain disruptions and supply chain disruptions.

However, the better-than-expected performance of both exports and imports amid these challenges indicates that China’s external trade is still relatively strong amid global economic uncertainties.