China’s exports in June unexpectedly increase as economies rebound, imports rise

BEIJING (Reuters) – China’s exports rose unexpectedly in June when foreign economies reopened after the blockades, while imports grew for the first time this year, reinforcing views that the recovery from the pandemic is winning Land in the second largest economy in the world.

Exports in June were up 0.5% from a year earlier, customs data showed on Tuesday, beating analyst expectations for a 1.5% drop and compared to the 3.3% decline in may.

Imports also increased 2.7%, confounding market expectations of a 10% drop. They had fallen 16.7% the previous month.

“The reopening of major western economies and high overseas demand for PPE (personal protective equipment) and masks supported Chinese exports in June,” said Boyang Xue, a China analyst at Ducker Frontier.

“In addition, disruptions in production from China’s commercial competitors also helped transfer some orders to Chinese exporters.”

China’s economy is gradually emerging from a strong 6.8% contraction in the first quarter, but the recovery remains fragile as global demand falters from social constraints and coronavirus cases continue to rise. Chinese consumption has also declined amid job losses and concerns about the resurgence of infections.

However, the country’s export performance has not been as badly affected by the global slowdown as some analysts feared, although weak orders abroad may affect its manufacturers in the coming quarters.

External risks, such as worsening US-China relations, declining global demand and disruptions in supply chains, are likely to put pressure on China’s long-term business prospects, the Institute of Finance said on Saturday. Advanced Research from Shanghai University of Finance and Economics.

“In the second half, growth in exports and imports is very likely to extend the declines seen in the first half.”

But Xue saw positive in Tuesday’s trade figures as a sign that the economy had taken a turn.

“The significant improvement in China’s imports is an indication of the country’s accelerated economic recovery, which has been driven mainly by substantial increases in investments in sectors such as real estate and infrastructure.”

Iron ore imports increased in June, trade data showed, fueled by rising miners’ shipments and strong demand in China. Crude oil imports also hit a record.

United States President Donald Trump said Friday that he was not thinking of negotiating a “Phase 2” trade agreement with China, as relations between Washington and Beijing have been “severely damaged” due to the coronavirus pandemic. and other problems.

China’s trade surplus with the United States expanded to $ 29.41 billion in June from $ 27.89 billion in May.

The country’s trade surplus for June was $ 46.42 billion, compared to an expected surplus forecast of $ 58.6 billion in the survey and a surplus of $ 62.93 billion in May.