BEIJING (AP) – China’s exports increased by 7.2% in July as the world’s second-largest economy recovered from the coronavirus pandemic.
U.S. sales increased by 12.5% despite a drop in U.S. economic activity and a protracted tariff war with Washington, it showed customs knowledge Friday.
Global exports have accelerated since the 3% increase in June and exceeded low or no growth forecasts.
“There is an overall improvement in exports in July compared to June, not just medical materials that were in the past the main contributor,” ING’s Iris Pang said in a report. He pointed to profits on shipments of electronics, automobiles and clothing.
Imports fell by 1.4% in monetary terms due to lower commodity prices, but overall volume increased.
China, where the pandemic began in December, is the first economy to close to fight coronavirus and the first to reopen after the ruling Communist Party declared victory over the disease in March.
The world’s second-largest economy grew by 3.2% from the previous year in the 3 months ending June, when factories and retail stores reopened, recovering from the 6.8% contraction in the last quarter.
Chinese exports have recovered faster than the global total, suggesting that brands are gaining a market share of their competition in countries that would likely still be subject to trade-hampering restrictions.
Exporters benefited from strong demand for surgical gloves, masks and other medical products manufactured in China.
Meteorologists warn that export demand will likely decrease as the increasing number of coronavirus infections in the United States and other countries activates governments to re-impose controls on businesses.
“The way forward can be difficult,” Louis Kuijs of Oxford Economics said in a report.
In July, exports reached $237.6 billion, accelerating from 3 percent in June. Imports were reduced to $175.3 billion.
Exports to the United States reached $43.7 billion. U.S. imports increased 3.6% to $11.3 billion.
Sales in the United States increased by 12.5% despite the protracted tariff war with Washington, it showed customs knowledge on Friday.
Overall, exports reached $237.6 billion, up from the 3% increase in June. Imports fell 1.4% to $175.3 billion.
The country’s politically sensitive industry exceeds $62.3 billion.
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China’s General Customs Administration (in Chinese): www.customs.gov.cn