China’s exports top forecasts, but falling imports point to more stimulus

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China’s exports top forecasts, but falling imports point to more stimulus
EconomyChina ExportsTrade
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BEIJING, July 12 — China’s exports grew at their fastest in fifteen months in June, suggesting manufacturers are front-loading orders ahead of tariffs expected from a growing...

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“This reflects the economic condition in China, with weak domestic demand and strong production capacity relying on exports,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. Stronger-than-expected exports have been one of the few bright spots for an economy otherwise struggling for momentum despite official efforts to stimulate domestic demand following the pandemic. A prolonged property slump and worries about jobs and wages are weighing heavily on consumer confidence.

Chinese exporters are also on edge heading into US elections in November in case either major party tips fresh trade restrictions. China took in only slightly more chips in June in volume terms than it did a year earlier, suggesting China’s heavy investment in expanding production of older chips — known as legacy chips and which can be found in everything from smartphones to fighter jets — is warping supply and demand.

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