China trade data tops expectations as exporters race to beat tariff deadline

(Sharecast News) - China's export growth surprised to the upside in July, with exporters accelerating shipments ahead of a looming tariff deadline and early signs of recovering domestic demand. Exports rose 7.2% year-on-year, according to the General Administration of Customs of the People's Republic of China, beating expectations of a 5.4% increase and marking a sharp pickup from June's 4.8% growth, driven by front-loaded shipments amid a fragile tariff truce with the United States, set to expire on 12 August.

Exports to the US continued to slide, falling 21.7% year-on-year, underscoring the uneven impact of ongoing trade tensions between the world's largest economies. However, July's US export declines were mostly offset by shipments to alternative markets, such as Southeast Asia, which increased 16.6%, and the European Union, up 9.2%.

Imports also defied forecasts, climbing 4.1% compared to a projected 1.0% decline, marking the strongest monthly growth since last July.

On the whole, China's trade surplus reached $683.5bn as of July, up 32% year-on-year.

July's figures represented a rare bright spot for Beijing, which continues to do battle with weak factory output, deflationary pressures, and a sluggish property sector.



Reporting by Iain Gilbert at Sharecast.com