Unexpected growth in china’s export business

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Exports from China surprisingly increased last month (June), bolstering the economy amid concerns that the recovery is slowing.
On Tuesday (July 13), the customs department said that export growth increased to 32.2 per cent in US dollar terms last month from a year earlier, defying experts’ predictions of a drop to 23 per cent.
Imports increased by 36.7 per cent, above the consensus estimate of 29.5 per cent. This resulted in a monthly trade surplus of $51.5 billion (S$69.6 billion), the largest since January.
Along with growing prices, global demand for Chinese items such as medical goods and work-from-home devices boosted exports this year.
Imports increased by 36.7 per cent, above the consensus estimate of 29.5 per cent. This resulted in a monthly trade surplus of $51.5 billion (S$69.6 billion), the largest since January.
Along with growing prices, global demand for Chinese items such as medical goods and work-from-home devices boosted exports this year.
However, there are hints that the upward trend may be slowing due to supply constraints and expensive transportation costs and an increase in manufacturing capacity abroad.
“The unexpected increase in exports is likely attributable in large part to increased commodity prices, since commodities such as iron ore rose in price and pricing pressures were passed on from imports to exporters,” says Mr Zhou Hao, Commerzbank’s senior emerging markets economist.
Because of a strong base last year, he expects export growth to decelerate in the second half of the year.
Mr Li Kuiwen, a spokesman for the customs agency, also predicted slower growth in imports and exports for the remainder of the year. However, he added that full-year commerce is still projected to expand at a rapid pace.
Despite a rise in coronavirus infections in southern China, which caused delays in cargo at some key ports for much of last month, commerce increased last month.
Export growth to the United States dropped to 17.8% in June but increased significantly to Hong Kong, Japan, and South Korea. China’s trade surplus with the United States grew further this month, hitting $32.6 billion.
The customs office released data on yuan commerce, indicating that exports increased by 28.1% in the first half of the year compared to the same period last year, while imports increased by 25.9%.

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