Chinese imports unexpectedly fall in June, but exports exceed expectations

BEIJING – Chinese imports fell in June, exceeding expectations for slight growth, while exports rose more than expected, Customs details were released on Friday showed.

Chinese imports fell 2.3% in June from a year ago, measured in US dollars. That is in stark contrast to the forecast of 2.8% growth, according to a Reuters poll.

U.S. dollar-denominated exports rose 8.6% year-on-year in June, exceeding expectations for 8% growth forecast by a Reuters poll.

These figures saw imports increase this year by 2% and exports by 3.6% in the first six months compared to the same period a year earlier.

China’s trade with the Association of Southeast Asian Nations rose 7.1% in the first half of the year, strengthening the bloc’s position as the country’s largest trading partner by region, followed by the European Union.

The EU’s trade with China fell in the first six months of 2024, with both imports and exports falling.

China’s trade with the US fell slightly in dollar terms in the first half of the year, as imports from the US fell 4.9% while exports rose 1.5%.

Trade with Brazil grew rapidly in the first six months, with Chinese exports to the Latin American country rising 24.4% and imports up 8.3% year-on-year.

Chinese imports of rare earth metals, meat, cosmetics and machine tools fell sharply in the first half of the year, customs data showed. However, imports of iron ore and oil grew during that time.

Amid slower domestic growth, Beijing has sought to shore up its own supplies food and crucial minerals in an effort to strengthen national security.

In the first half of the year, Chinese exports of furniture, household appliances, ships and cars grew. Rare earth exports fell in terms of value but rose in volume, the data showed.

Chinese car exports rose 18% in volume last month from the same period last year, customs data showed.

Other reported major retail goods categories showed the volume of suitcases China exported in June rose 9% from a year ago. The number of exported shoes increased by 3.7% to 840 million pairs in June.

Chinese exports rose 7.6% in May from last year in US dollars, but imports rose only 1.8% in the period.

Domestic demand is still weak. Chinese consumer prices rose 0.2% year on year in June, falling short of expectations, while producer prices met expectations, data from the National Bureau of Statisticsshown on Wednesday.

The core CPI, which excludes more volatile food and energy prices, rose 0.6% year-on-year in June, slightly slower than the 0.7% increase in the first six months of the year.

China’s National Bureau of Statistics will release gross domestic product figures and economic indicators for the second quarter of June on Monday.