China notches steady export growth in July as imports surge

BEIJING: China’s exports grew slightly slower than expected in July while imports surged, official figures showed Wednesday, as the world’s second-largest economy charts an uneven recovery.

Overseas shipments expanded 7.0 percent on-year last month, according to China’s General Administration of Customs.

That compares with the 8.6 percent increase recorded the month before and short of the 9.5 percent forecast in a Bloomberg survey of analysts.

Beijing is seeking to achieve annual national growth of around five percent this year, a target considered ambitious by many observers.

Exports have historically served as an important engine for economic activity in China.

And they have now expanded for four consecutive months, following a year-on-year decline of 7.5 percent in March.

However, imports jumped 7.2 percent in July, more than twice as much as expected and after a surprise drop in June.

Since China’s abrupt scrapping of stringent Covid control measures in late 2022, an anticipated return to economic vitality has proven elusive.

The economy is battling number of headwinds including a prolonged debt crisis in the vast property sector, high youth unemployment and sluggish consumer spending.

The uncertain economic situation has weighed on Chinese purchases of goods and services from abroad.

China maintains a trade surplus, which shrank to $84.65 billion in July from $99.05 billion in June.