China’s exports grow 8.6%, imports fall 2.3% in June

Hong Kong: China’s exports beat forecasts in June, customs data showed Friday, while imports grew less than expected.

Exports grew 8.6 per cent from the same time last year to hit $307.8 billion, according to data released by Chinese customs, beating estimates of about 7.4 per cent to 8 per cent growth.

Imports however fell 2.3 per cent from a year earlier to $208.8 billion.

China’s strong exports for June led to its trade surplus widening to $99 billion, up from $82.6 billion in May.

The growth in exports comes as China faces escalated trade tensions with the US and Europe. The US and Europe have ramped up tariffs on Chinese-made electric cars.

“Tariffs from the US and EU won’t significantly impact overall exports in the short run. They only target a small portion of Chinese exports,” Zichun Huang of Capital Economics wrote in a note.

Import volumes will likely rebound soon as the uptick in recent government bonds issued will likely result in increased infrastructure spending, thereby lifting demand for industrial commodities, Huang wrote.