China’s Trade Unexpectedly Rose in June Amid Worsening Virus

15-Jul-2020 Intellasia | Bloomberg | 6:02 AM Print This Post

China’s exports and imports both rose in June, even as the pandemic continued to ravage the global economy.

Exports rose 0.5 percent from a year ago, while imports expanded 2.7%. Both had been forecast by economists to fall.In yuan terms, exports grew 4.3 percent in June from a year earlier, while imports rose 6.2%, the customs administration said Tuesday.

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With countries such as the US still unable to control the outbreak, there’s no sign of when global demand for Chinese exports will recover sustainably to pre-virus levels.The deterioration of relations with the US adds to the uncertainty for trade, although China has been stepping up efforts to meet the terms of the trade deal.Even with the turn up in June, trade in the first six months of the year is still well down on the same period last year. Exports through the end of June were 6.2 percent smaller than 2019, while imports were 7.1 percent lower.Positive net exports will provide some support to Chinese gross domestic product growth in the second quarter, after the historic 6.8 percent collapse in the first three months. The reading for GDP will be released Thursday.An increase in the trade balance “could be the major support for the second quarter’s GDP growth, but it could only help to a certain extent,” said Iris Pang, chief economist for greater China at ING Bank NV ahead of the data release.

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In the first half of the year, exports of textile products including face masks surged by 32.4 percent in yuan terms. Exports of medicines and pharmaceutical products and medical equipment increased by 23.6 percent and 46.4%, respectively.Driven by the increase of people working from home, exports of laptops increased 9.1%.

https://finance.yahoo.com/news/china-trade-rose-yuan-terms-021028786.html

 


Category: China

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