CHINA's exports grew at their fastest in fifteen months in June, suggesting manufacturers are front-loading orders ahead of tariffs expected from a growing number of trade partners, while imports unexpectedly shrank amid weak domestic demand.
The mixed trade data keeps alive calls for further government stimulus as the US$18.6 trillion economy struggles to get back on its feet, reports Reuters.
Analysts warn that the jury is still out on whether strong export sales in recent months can be sustained given major trade partners are becoming more protective.
'This reflects the economic condition in China, with weak domestic demand and strong production capacity relying on exports,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
'The sustainability of strong exports is a major risk for China's economy in the second half of the year. The economy in the US is weakening. Trade conflicts are getting worse
Outbound shipments from the world's second-biggest economy grew 8.6 per cent year on year in value in June, customs data showed, beating a forecast 8.0 per cent increase in a Reuters poll of economists and a 7.6 per cent rise in May.
But imports hit a four-month low, shrinking 2.3 per cent compared with a forecast 2.8 per cent increase and a 1.8 per cent rise the previous month, highlighting the fragility of domestic consumption.
China's trade surplus stood at $99.05 billion in June, the highest in records going back to 1981, compared with a forecast of $85 billion and $82.62 billion in May. The US has repeatedly highlighted the surplus as evidence of one-sided trade favouring the Chinese economy
Washington in May hiked tariffs on an array of Chinese imports, including quadrupling duties on Chinese electric vehicles to 100 per cent. Brussels last week confirmed it would impose tariffs on EVs as well, but only up to 37.6 per cent.
Chinese exporters are also on edge heading into US elections in November in case either major party tips fresh trade restrictions.
SeaNews Turkey
The mixed trade data keeps alive calls for further government stimulus as the US$18.6 trillion economy struggles to get back on its feet, reports Reuters.
Analysts warn that the jury is still out on whether strong export sales in recent months can be sustained given major trade partners are becoming more protective.
'This reflects the economic condition in China, with weak domestic demand and strong production capacity relying on exports,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
'The sustainability of strong exports is a major risk for China's economy in the second half of the year. The economy in the US is weakening. Trade conflicts are getting worse
Outbound shipments from the world's second-biggest economy grew 8.6 per cent year on year in value in June, customs data showed, beating a forecast 8.0 per cent increase in a Reuters poll of economists and a 7.6 per cent rise in May.
But imports hit a four-month low, shrinking 2.3 per cent compared with a forecast 2.8 per cent increase and a 1.8 per cent rise the previous month, highlighting the fragility of domestic consumption.
China's trade surplus stood at $99.05 billion in June, the highest in records going back to 1981, compared with a forecast of $85 billion and $82.62 billion in May. The US has repeatedly highlighted the surplus as evidence of one-sided trade favouring the Chinese economy
Washington in May hiked tariffs on an array of Chinese imports, including quadrupling duties on Chinese electric vehicles to 100 per cent. Brussels last week confirmed it would impose tariffs on EVs as well, but only up to 37.6 per cent.
Chinese exporters are also on edge heading into US elections in November in case either major party tips fresh trade restrictions.
SeaNews Turkey
