Summary:
- China’s Imports Surpass Expectations, Exports Slow
- Significant Growth in Car Exports, Crude Oil, and Natural Gas Imports
- Economic Challenges Highlighted Amid Structural Transformation Efforts
China’s imports exceeded expectations in July, while export growth fell short, according to customs data released recently.
Exports in U.S. dollar terms increased by 7% in July compared to a year ago, below the anticipated 9.7% rise forecasted by a Reuters poll. This figure also represented a slowdown from the 8.6% growth seen in June.
U.S. dollar-denominated imports surged by 7.2% in July, significantly higher than the 3.5% forecast.
China’s imports from the U.S. jumped 24% year-on-year in July, as calculated by CNBC based on official data. Imports from the Association of Southeast Asian Nations rose by 11%, and those from the European Union increased by 7%.
On a year-to-date basis, China’s imports from the U.S. were down 1.4%, while exports were up 2.4%.
China’s U.S. dollar exports to the U.S. and European Union both grew by approximately 8% year-on-year in July, while exports to the Association of Southeast Asian Nations surged by 12%, solidifying the region’s status as China’s largest trading partner.
China’s exports to Russia declined by 3% in U.S. dollar terms, while imports increased by 5%.
China’s car exports surged by 26% year-on-year, reaching 553,000 vehicles. Exports of home appliances grew by 17%, and smartphone exports also saw an uptick. However, rare earth exports dropped by 19%.
Imports of crude oil into China rose by 8%, while natural gas imports increased by 6%.
In Chinese yuan terms, export growth slowed to a 6.5% year-on-year increase in July, down from June. Yuan-denominated imports, however, rose by 6.6% in July, reversing a 0.6% decline from the previous month.
In June, imports unexpectedly fell due to weak domestic demand. Despite challenges from the real estate sector and subdued consumer spending, exports have remained a strong point in China’s economy.
China’s economy grew by 5% in the first half of the year, but June saw retail sales growth slow to 2%, casting doubt on meeting the full-year GDP target.
When asked about stimulus plans for the second half of the year, Chinese officials reiterated their commitment to existing measures and stressed the importance of long-term goals, such as advancing technology and fostering new growth drivers.
A National Development and Reform Commission official acknowledged the economy’s challenges, citing external factors and the structural transformation needed for high-quality development. This “pain,” the official stated, is necessary for progress, according to a CNBC translation of the Mandarin-language remarks.
Main Author: Evelyn Cheng
Source: CNBC
