Results for July: China’s exports are growing faster than expected

Lockdowns and a real estate crisis are weighing on China’s economy. Exports, on the other hand, are doing better than expected – there was a significant increase in trade with Russia in particular. Germany, on the other hand, exports less to China.

China’s exports surged unexpectedly in July, boosting the economy weighed down by the coronavirus pandemic. Exports in US dollars rose 18 percent in July compared to the same period last year, according to Chinese customs officials in Beijing.

This is the steepest climb so far this year. In June, the increase was 17.9 percent. Experts had expected an increase in exports of 15.0 percent. Many analysts had also expected exports to slow as global demand slowed due to high inflation.

Second largest economy heavily burdened this year

The increased exports this year are one of the few bright spots for the world’s second largest economy. Lockdowns in the midst of the corona pandemic hit the population and companies hard. The once extremely strong real estate market is reeling from one crisis to the next.

The July data on imports point to a continued weakening of domestic demand: imports rose by 2.3 percent compared to the same period last year and fell well short of the forecast of 3.7 percent. In June, the import plus was 1.0 percent. Overall, China posted a trade surplus of $101 billion in July.

Particularly strong Chinese trade with Russia

Chinese trade with Russia developed particularly strongly, increasing by 37.1 percent. China’s imports from the neighboring country – which is subject to international economic sanctions for its invasion of Ukraine – rose by 49.3 percent. China imports a particularly large amount of energy from Russia. Chinese exports grew by 22.2 percent.

Germany exports less to China

According to this information, Germany’s exporters continue to suffer from a decline in German exports to the second largest economy. China’s imports from Germany fell 6.7 percent. On the other hand, Chinese exports to Germany continued to increase by 17.6 percent.

The trend in trade with Europe is similar: China’s exports to the European Union even increased by 23.2 percent, while imports from the Community fell by 7.4 percent.