China trade balance jumps in June as exports surge; imports weaken
2024.07.11 23:31
Investing.com– China’s trade balance grew more than expected in June on surging exports, while imports unexpectedly shrank as local demand remained subdued amid persistent concerns over the economy.
grew in June to a surplus of $99.05 billion, government data showed on Friday. The reading was higher than expectations for a surplus of $85 billion, and rose sharply from the $82.62 billion seen in the prior month.
Friday’s reading also showed the country’s trade balance at its strongest level since July 2022, as strong local manufacturing and robust overseas demand drove up exports.
grew 8.6% year-on-year in June against expectations for a 8% increase, and a 7.6% rise in the prior month. This also came amid some economic resilience in China’s biggest export destinations in Europe and Asia.
Weak imports also factored into the stronger trade balance. China’s shrank 2.3% year-on-year in June, compared to expectations for a rise of 2.8% and reversing course after a 1.8% increase in May.
The weak import data indicated that local demand remained weak amid persistent concerns over a Chinese economic recovery. Softer-than-expected inflation data earlier this week also showed that a disinflationary trend remained largely in play in the country.
But even as China’s exports grew in June, they are expected to face difficulties in the coming months, especially after the European Union imposed steep import tariffs on Chinese electric vehicles.
Analysts had also noted that persistent strength in Chinese exports could see other countries follow suit in imposing anti-dumping laws against Chinese goods to protect local producers. Such a scenario presents more headwinds for China’s exports.
