BEIJING: China’s exports increased at a considerably faster rate than projected in June, as viral outbreaks and port delays were overshadowed by strong global demand fueled by lessening lockdown measures and vaccination campaigns around the world. Imports grew faster than expected in June, though at a slower pace than in May, with values bolstered by high raw material prices, according to customs statistics released on Tuesday (July 13).
The world’s largest exporter has made a decent economic recovery from the coronavirus-induced recession in the first few months of 2019 thanks to Beijing’s efforts in substantially curbing the epidemic earlier than its trade partners.
In recent months, China’s trade performance has been hampered by a global semiconductor shortage, transportation bottlenecks, and increasing raw material and freight costs.
Nonetheless, global relaxations in COVID-19 lockdown measures and vaccination campaigns appeared to support a large increase in global demand for Chinese commodities.
In dollar terms, exports increased 32.2 percent in June from a year ago, compared to 27.9% in May. Reuters polled analysts, who predicted a 23.1 percent increase.
The robust cargo numbers reflected certain positive factory surveys conducted in other countries. In June, a gauge of US manufacturing activity hit a new high, while corporate growth in the Eurozone advanced at its strongest rate in 15 years. Imports surged 36.7 percent year over year last month, topping a prediction of 30.0 percent but decreasing from a 51.1 percent increase in May, which was the greatest rate in a decade. Last month, China had a trade surplus of $51.53 billion, compared to the poll’s prediction of $44.2 billion and the US$45.54 billion surplus in May. Last month, China’s second-largest economy successfully managed a small coronavirus epidemic in one of its main export centers in southern Guangdong province.
READ: Anti-COVID-19 actions aggravate congestion at south China ports
Exporters, on the other hand, are dealing with greater raw material and freight prices, as well as logistical difficulties.
Coal, steel, iron ore, and copper prices have soared this year, propelled by the lifting of economic restrictions in several countries and plentiful global liquidity./n
