Exports rebound 26.9pc on pre-Olympics orders

The mainland's weakened export trade rebounded unexpectedly last month as factories attempted to fill orders before the Beijing Olympic Games.

But some economists doubt the pace can be sustained given continuing weak economic growth in the country's key global markets.

Overseas shipments leapt 26.9 per cent to US$136.67 billion while imports grew 33.7 per cent to US$111.39 billion. That pushed the trade surplus 3.69 per cent higher to US$25.28 billion from July last year.

Exports accelerated from the 17.6 per cent growth seen in June, with economists attributing the rebound to pre-Olympics shipments, a shorter Golden Week holiday and floods in Guangdong in the early summer. But they say the upbeat figures may be temporary and that softening consumer demand in the United States, the European Union and Japan will continue to affect shipments in the months ahead.

Analysts also expect the yuan to hover at relatively high levels and cast a shadow on export growth despite the currency's recent easing against the US dollar. A stronger yuan makes export products less competitive in the world markets.

'The figures were surprisingly strong last month,' said Ken Peng, an economist with Citigroup Global Markets. 'It also showed that the weaknesses in June data were exaggerated.'

In the first seven months of the year, exports soared 22.6 per cent to US$802.91 billion while imports rose 31.1 per cent to US$679.19 billion. That resulted in a trade surplus of US$123.72 billion, a 9.6 per cent year-on-year decline.