China June exports, imports higher than expected

By Yawen Chen and Ryan Woo

By Yawen Chen and Ryan Woo

Completing a hat-trick of beats, the national trade surplus grew from $40.81 billion to $42.77 billion, marginally topping the $42.44 billion level expected.

"We don't think the 100-day plan between China had much impact on steel exports in June, since the USA only takes a very small part among China's total exports", said Wang at Sinosteel Futures. Meanwhile, the value of imports climbed 17.2% year-over-year. Based on May import figures of 22.19 million tonnes, June imports were down 2.7 percent from a month earlier, according to Reuters calculations.

"Looking ahead, we expect export growth to slow on uncertainties in external demand due to rising geopolitical risks and the stronger yuan-U.S. dollar exchange rate in the first half of 2017", Nomura researchers said in a note after the data release.

Imports have been strong in recent months, driven largely by iron ore and other commodities used to feed a year-long construction boom, while exports have rebounded thanks to stronger global demand after several years of contraction.

China's consistent USA trade surplus levels have left it vulnerable to accusations of currency manipulation, particularly given the fact that the yuan fell 6.6% against the dollar past year, its biggest decline since 1994.

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

"Import growth is also likely to moderate along with export growth, in our view".

It was also an improvement on the 8.7% level reported a month earlier.

In yuan terms, exports increased 17.3% and imports surged 23.1%. The administration is conducting a separate investigation into steel. -China Comprehensive Economic Dialogue in Washington on July 19, which will be the first covering economic and trade issues in a new format for U.S.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.