China’s exports show surprising surge in July, powered by demand for lockdown goods overseas
- China’s exports surged 7.2 per cent in July, with shipments well ahead of analysts’ expectations
- Strong shipments of medical supplies, electronics and ‘work-from-home equipment’ power July’s boom, with exporters capitalising on lockdowns overseas
Powered by rising overseas demand for electronics, medical supplies and other goods to be used in coronavirus lockdowns around the world, China's export growth surged past expectations in July, with outbound shipments up 7.2 per cent from a year earlier.
Imports contracted by 1.4 per cent from a year earlier, worse than analysts’ forecasts in US dollar terms, data released by the Chinese Customs Administration on Friday showed.
A group of economists polled by Bloomberg had forecast exports to fall by 0.7 per cent in US dollar terms, while imports were predicted to rise by 0.8 per cent.
China’s trade balance for July stood at US$62.33 billion, increasing from US$46.2 billion in June.
Analysts pointed to strong shipments of medical supplies and “work-from-home equipment” as reasons behind the surge in exports. Indeed, as other economies around the world have veered in and out of lockdown, China’s exporters appear to have been a beneficiary.
“In July, the export strength was largely driven by electronics – especially ‘automatic data processing equipment’, mobile phones, household appliances, audio and video devices – and hi-tech products, with traditional categories like plastic and textile also contributing well,” said Louis Kuijs, Asia-Pacific analyst at Oxford Economics