China’s Exports and Imports Rise Against Expected Decline
Economic News: In June, China denominated imports and exports rose as restrictions eased and countries reopened their economies.
June’s customs data beat the expectations of a decline. Exports rose by 0.5% and imports also rose 2.7% in the same period.
A Reuters poll estimated that June exports would contract by 1.5% from the previous year, bouncing from a 3.3% decline in May. The poll expected to drop 10% from the previous year compared to a drop of 16.7% in May. The drop could be attributed to the increase in crude oil and commodities purchases.
Earlier, China published its customs data, showing that yuan-dominated exports in June rose by 4.3% from the previous year. Meanwhile, imports rose by 6.2% in the same period.
According to analysts, the rise in imports indicates a strong domestic demand in China. The jump suggested that domestic demand was holding up well and accelerating.
Gary Dugan, who is the CEO of an investment firm, said the rise was good news to commodities markets and global growth.
In an adjusted month on month terms, imports grew by 14.1% – the sharpest single-month rise since 2012.
Admittedly, the rise partly reflects the recent rebound in global commodities prices, and it seems as though import volumes also picked up.
According to Reuters, the data in June also showed that China’s trade surplus with the United States widened to $29.41 billion, versus $27.89 billion in May.
The US-China tensions have worsened this year, with President Trump blaming China for the coronavirus pandemic. Last week Trump said he wasn’t even thinking about the second phase of the trade deal.
Economies in Asia and other nations globally have gradually started to reopen. Since May, the US and European countries have eased lockdowns, leading to increased shipments of cargo backlogs previously stuck at Chinese ports.
However, coronavirus resurgence is threatening economic recovery with cases rising again in countries such as the US, South Korea, and Australia.
Resurgences of positive coronavirus cases have led to most countries reinstating restrictions.
As the pandemic grips the world, China’s medical supplies exports jumped in the first half of the year.
- Personal protective equipment (PPE) exports rose by 32.4%
- Drug exports rose by 23.6%
- Medical equipment exports rose by 46.4%
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