China's exports rise, but falling imports dampen June trade data

Analysts warn that export sales may not be sustained amid curbs on Chinese goods

China’s exports grew at their fastest pace in 15 months in June, suggesting manufacturers are front-loading orders ahead of tariffs expected from a growing number of trade partners, while imports unexpectedly shrank amid weak domestic demand.

The mixed trade data keeps alive calls for further government stimulus as the US$18.6 trillion (S$25 trillion) economy struggles to get back on its feet.

Analysts warn that the jury is still out on whether strong export sales in recent months can be sustained, given major trade partners are becoming more protective.

“This reflects the economic condition in China, with weak domestic demand and strong production capacity relying on exports,” said Pinpoint Asset Management chief economist Zhang Zhiwei.

“The sustainability of strong exports is a major risk for China’s economy in the second half of the year. The economy in the US is weakening. Trade conflicts are getting worse.”

Outbound shipments from the world’s second-biggest economy grew 8.6 per cent year on year in value in June, Customs data showed on July 12, beating a forecast 8 per cent increase in a Reuters poll of economists and a 7.6 per cent rise in May.