China’s imports exceeded expectations in July, while export growth fell short of forecasts, according to customs data released on Wednesday.
Imports, measured in U.S. dollars, increased by 7.2% from a year earlier, surpassing the anticipated 3.5% rise. This was a notable jump compared to June’s performance. In contrast, exports grew by 7% in July, missing expectations of a 9.7% increase and slowing from June’s 8.6% growth.
Imports from the U.S. surged by 24% year-on-year in July, reflecting a strong uptick. Meanwhile, imports from the Association of Southeast Asian Nations rose by 11%, and those from the European Union increased by 7%. Despite these gains, year-to-date figures show a 1.4% decline in imports from the U.S., though exports to this region rose by 2.4%.
China’s Imports Exceeded Expectations In July
In July, exports to the U.S. and the European Union each saw an 8% increase, while exports to the ASEAN countries grew by 12%, making them China’s largest trading partner. Conversely, exports to Russia fell by 3%, though imports from the country rose by 5%.
China’s automotive exports jumped by 26% to 553,000 vehicles, and home appliances exports rose by 17%. Smartphone exports also grew, but rare earth exports declined by 19%. Crude oil imports increased by 8%, while natural gas imports were up by 6%.
In yuan terms, exports grew by 6.5% year-on-year in July, slowing from June’s rate. Imports in yuan terms rose by 6.6%, rebounding from a 0.6% decline in June.
The Chinese economy grew by 5% in the first half of the year, but June saw retail sales growth decelerate to 2%, casting doubt on achieving the full-year GDP target. Officials have reiterated existing stimulus measures and stressed the importance of long-term goals, including technological advancements and new growth drivers.
The National Development and Reform Commission acknowledged that the economy faces both external and structural challenges, describing them as necessary adjustments in the pursuit of high-quality development.
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