China trade: July ‘surprise’ as exports beat forecasts, but imports fail to catch up

China’s total trade surplus hit an all-time high of US$101.26 billion in July, compared with US$97.94 billion in June

Exports grew by 18 per cent last month from a year earlier to US$333 billion, compared to a 17.9 per cent growth in June

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China has ruled out excessive stimulus to boost growth but will continue to focus on targeted macro policies. Photo: Xinhua

Published: 12:54pm, 7 Aug 2022Updated: 9:39am, 8 Aug 2022

China’s export growth continued its rising momentum to beat expectations in July, but imports remained weak, sending the total trade surplus to a record high, latest official data showed.

Exports grew by 18 per cent last month from a year earlier to US$333 billion, compared to a 17.9 per cent growth in June, according to data released by China Customs on Sunday.

The July figure was above expectations for a rise of 16.2 per cent, according to Wind, a leading provider of financial information services in China.

Imports, meanwhile, grew by 2.3 per cent year on year in July to US$231.7 billion, up from 1 per cent growth in June, but well below the expected 4.5 per cent increase.

This came as China’s total trade surplus hit an all-time high of US$101.26 billion in July, compared with US$97.94 billion in June.

Alicia Garcia Herrero, chief Asia-Pacific economist at French investment bank Natixis, said China “is not comfortable with a trade deficit” in such difficult times.

“The more reserves they can accumulate the better, for rainy days. Taiwan’s situation shows that sanctions on [Beijing] could come,” she added.