Chinese exports rise in June, but imports fall

This latest data comes ahead of a important political meeting focused on economic recovery which will be held in Beijing starting on Monday.

On that day, the Asian giant will also publish its growth results for the second quarter.

Exports have historically been a major economic driver in China and have a direct impact on employment in thousands of companies.

The June figure is the third consecutive monthly increase. It is higher than that of May (+7.6%) and higher than the analysts’ forecasts of +8%.

“Exports should remain strong in the coming months thanks to solid external demand and the high competitiveness of Chinese products,” economists at the investment bank Goldman Sachs said in a note.

But they warn of a risk in 2025 and 2026 if former US President Donald Trump returns to power.

Imports, on the other hand, unexpectedly fell in June (-2.3% year-on-year), a sign of the fragility of domestic demand.

Analysts polled by Bloomberg had expected an acceleration (+2.5%), after a rise of 1.8% in May.

The trade figures “reflect China’s economic situation, with weak domestic demand but strong production capacity dependent on exports,” said analyst Zhiwei Zhang of Pinpoint Asset Management.

The world’s second-largest economy is experiencing a slow post-Covid recovery, weighed down by a debt crisis in the real estate sector, weak consumption and international geopolitical tensions.