The General Administration of Customs of the Chinese Communist Party released trade data for imports and exports in July today, August 7th. Export growth in July slowed down, hitting a nearly three-month low, while imports increased by 7.2% compared to the same period last year.
According to the General Administration of Customs, in US dollar terms, China’s exports in July increased by 7.0% compared to the same period last year. The growth rate of exports slowed down, falling below market expectations to reach a nearly three-month low. The year-on-year growth rates for exports in May and June were 7.6% and 8.6%, respectively. Imports in July grew by 7.2% compared to the same period last year, increasing by 9.5 percentage points compared to the negative growth in June.
A report by Reuters on the 7th analyzed that the growth rate of China’s exports in July hit the slowest pace in nearly three months, heightening concerns about the outlook for the country’s manufacturing industry. The Chinese government has been focusing on stimulating domestic demand since the COVID-19 pandemic, but consumer confidence remains to be uplifted amidst challenges such as a sluggish real estate market and unemployment.
Lynn Song, Chief Economist for Greater China at ING, stated that due to base effects, China’s exports may maintain single-digit growth in the near future. Considering external demand and tariff issues, export growth is expected to slow down, putting greater pressure on shipment volumes in the second half of this year.
In terms of cross-strait trade, the total imports and exports between both sides in July amounted to $26.2 billion, which represents an increase of approximately 16.5% compared to the same period last year. Mainland China imported $19.3 billion from Taiwan, a 14.4% increase year-on-year, while exports from mainland China to Taiwan amounted to $6.9 billion, marking a 23.1% increase.
For the first seven months of the year, ASEAN remained China’s largest trading partner, with a total trade value of 3.92 trillion yuan, representing a 10.5% increase compared to last year. Exports to ASEAN amounted to 2.36 trillion yuan, marking a 13.7% increase, while imports from ASEAN reached 1.56 trillion yuan, showing a 5.9% growth. The trade surplus with ASEAN widened by 33.2% to 793.55 billion yuan.
The European Union stands as China’s second-largest trading partner, with a total trade value of 3.22 trillion yuan, representing a slight increase of 0.4% compared to the previous year.