China August imports beat expectations, but exports disappoint

China on Friday reported data pointing to strong domestic demand as imports beat expectations in August, although overall export growth eased.In August, China reported August exports were up 5.5 percent from a year ago in dollar terms, while imports were up 13.3 percent in dollar terms.

Analysts polled by Reuters expected a 6.0 percent rise in Chinese exports in August from a year ago in dollar terms. August imports were forecast to rise 10.0 percent in the same period.

"The strong import data suggests that domestic demand may be more resilient than expected in the second half," Louis Kuijs, head of Asia economics at Oxford Economics wrote in a note.As for exports, the headline figure points to a softening of global demand momentum, although a pickup in shipment growth to emerging Asia and the U.S. offset slower export expansion to the EU and Japan, Kuijs added.

The slowdown in export growth may be temporary, said ANZ's senior China economist, Betty Wang.

Even with the recent strength in the Chinese currency, China's role in global supply chains is unlikely to replaced in the near term as the country's export competitiveness shifts from low-value added to high-tech products, added Wang.

China's August trade balance was $41.99 billion, data from the General Administration of Customs showed.The country's surplus with the U.S. rose to $26.23 billion from $25.2 billion in July. The two countries' trade is closely-watched amid current tensions between the economic giants about trade practices.

China's economic data have been showing robust growth ahead of leadership changes later this year.

But many expect the mainland's economy to slow in the second half of the year due to a crackdown on debt and as the property market cools.

In July, China reported a 7.2 percent increase in imports and a 11.0 percent on-year rise in exports in dollar terms.

Market watchers are keeping their eyes on the health of the world's second-largest economy ahead of a key Communist Party meeting in October.

China on Friday also reported August exports were up 6.9 percent in yuan terms, while imports were up 14.4 percent in yuan terms from a year earlier, Chinese customs data showed.

China's July exports, imports weaker than expected, cloud global outlook

BEIJING: China's exports and imports grew more slowly more than expected in July, raising concerns over whether global demand is starting to cool even as major Western central banks consider scaling back their massive stimulus programmes.

China and Europe have been driving an increasing share of global growth this year as political conflict stymies stimulus policies being pushed by U.S. President Donald Trump.

China's exports and imports

But China's export growth slowed to 7.2 percent in July from a year earlier, the weakest pace since February and cooling from an 11.3 percent rise in June, official data showed on Tuesday. Analysts had expected a 10.9 percent gain.

Imports rose 11.0 percent, the slowest growth since December and down from a 17.2 percent rise in the previous month. That also missed expectations of 16.6 percent growth.

That left the country with a trade surplus of $46.74 billion for the month, the highest since January, compared with forecasts for $46.08 billion and above June's $42.77 billion. The July trade figures are preliminary, with revised data due on July 23.

Asian stock markets went flat after the disappointing China data, which came a day after ratings agency Fitch upgraded its outlook for the world economy for this year and next, citing recoveries in China and other emerging markets.

"Despite an uptick at the end of the second quarter, (China's) trade growth now appears to be on a downward trend. In particular, the sharp decline in import growth since the start of the year suggests that domestic demand is softening," Capital Economics said in a note.

Improving global demand has boosted exports for China and other trade-reliant Asian economies in recent months after several lean years of declining shipments, but investors have been more focused on its strong appetite for imports, particularly for industrial commodities such as iron ore and coal, which have sparked a global price rally.


TRADE FRICTIONS
China's trade surplus with the United States, its largest export market, rose 5.9 percent in the first seven months of this year to $142.75 billion compared to the year-ago period, even as China's overall trade surplus has declined this year.

China's surplus with the U.S. was $25.2 billion in July, nearly unchanged from June's $25.4 billion, which was the highest since October 2015.

U.S. President Donald Trump is close to a decision on how to respond to what he considers China's unfair trade practices, as Washington prepares to launch an inquiry into Beijing's intellectual property and trade practices.

But America's appetite for Chinese goods appears to have only increased over the years.

The surplus with the U.S. accounted for over 60 percent of China's total surplus in the first half, compared to just 44 percent in the year-ago period, according to China customs data.

China has said that trade between China and the United States benefits both sides and that Beijing is willing to work with Washington to improve their trade relationship.

The United State and China failed last month to agree on major new steps to reduce the U.S. trade deficit with China, casting doubt over Trump's economic and security relations with Beijing.

Tensions between Washington and Beijing have escalated in recent months as Trump has pressed China to cut steel production to ease global oversupply and rein in North Korea's missile programme.

Trump tweeted in late July after the latest North Korea missile test that he was "very disappointed" in China and that Beijing profits from U.S. trade but had done "nothing" for the United States with regards to North Korea, something he would not allow to continue.

A China's vice commerce minister said last week that China's foreign trade faces a mostly positive environment in the second half of the year, but instability and uncertainties still exist.