Chinese exports, imports beat expectations in June

  • Chinese exports, imports beat expectations in June

Chinese exports, imports beat expectations in June

The trade surplus widened in June to $42.77 billion from $40.81 billion a month earlier, falling short of a median forecast for a $44.2 billion surplus.

GACC spokesman Huang Songping stated during today's press conference that the substantial increase was due to the gradual recovery of the global economy and the moderate but sound growth of the country's domestic market, China News Service reported. Talks between Donald Trump and Xi Jinping at the G20 summit were reportedly frosty and, if you add in the death of Chinese dissident and Nobel laureate Liu Xiaobo, there could be trouble ahead.

Similarly, imports surged 17.2% in June from a year ago, bigger than the expected growth of 14.5%.

Rise in China's exports from a year earlier, according to official data.

Its demand for imports, particularly for industrial commodities used to feed a construction boom, has remained robust in recent months. This is thanks mostly to resilient real estate demand in smaller Chinese cities with lax property rules as authorities are keen to clear a housing glut.

But analysts say a slowdown in demand for materials from overseas may already be taking place.

The world's second-largest economy is expected to lose momentum in the second half as Beijing clamps down on free-wheeling credit and property purchases that have been key drivers of growth for years.

Labour-intensive products also staged a rebound, with the rate of growth snapping back from 4% for May to 6.2% in June.

Exports rose 11.3% in June from a year earlier, following growth of 8.7% in May, the General Administration of Customs said Thursday.

"Total coal imports weakened slightly by 2.7% month on month and 0.7% year on year as crackdown on low-rank thermal coal imports may have kept Indonesian volumes away", Citi analysts said in a note.

The world's two biggest economies started their 100 days of trade talks in April and agreed in May to take action by mid-July to increase access for United States financial firms and expanding trade in beef and chicken among other steps.