China Trade Surplus Beats Expectations in July


China's trade surplus widened to USD 46.74 billion in July of 2017 from USD 48.61 billion in the same month a year earlier but above market consensus of USD 46.08 billion as exports and imports grew less.

Exports from China rose 7.2 percent year-on-year to USD 193.6 billion in July of 2017, easing from an 11.3 percent in the prior month and missing market expectations of 10.9 percent. It was the weakest incraese since February, as shipments to most major trading partners grew less, mainly to the US, South Korea and the EU. Meanwhile, exports to Japan rose at a faster pace.

Imports to China increased by 11 percent year-on-year to USD 146.9 billion in July of 2017, slowing from a 17.2 percent rise in June and missing market expectations of 16.6 percent. It was the slowest growth in imports since December last year due to cooling domestic demand.

The trade surplus with the United States narrowed to USD 25.2 billion from USD 25.4 billion in June, as exports grew less (8.9 percent versus 19.8 percent in June). The US and China have failed recently to agree on new steps to reduce the trade imbalances, worsening the economic and security relations. In contrast, the trade surplus with the European Union, the country's biggest trading partner, rose to USD 12.2 billion from USD 11.4 billion in June.

Considering January to July 2017, the trade surplus fell to USD 231.7 billion from USD 287.8 billion in the same period of 2016. 

In yuan-denominated terms, exports increased by 11.2 percent from a year earlier in July, following a 17.3 percent rise in June. Inbound shipments rose 14.7 percent, after growing 23.1 percent in the prior month. 


Rida Husna | rida@tradingeconomics.com
8/8/2017 12:52:14 PM