China’s trade surplus surged in June, which analysts have attributed to exporters rushing to ship products before U.S. tariffs recommence.
Chinese exports surged in June, with imports also rebounding in a surprise boost for the economy as the tariff deadline with the U.S. looms.
According to data released by the country’s customs authorities on Monday, China’s trade surplus grew to $114.8 billion in June, up from $103.2 billion in May and $98.94 a year ago. This surpassed forecasts of $109 billion.
Exports rose by 5.8 percent, accelerating from 4.8 percent in May and also exceeding previous estimates, while imports edged up by 1.1 percent, marking a recovery from the 3.4 percent decline seen the month prior.
Why It Matters
The surprising boost in China’s trading momentum comes amid a period of thawing in the country’s trade dispute with the U.S., and as the two countries rush to secure either a trade deal or progress in negotiations by the deadline of August 12.
Analysts have so far attributed this increase to exporters rushing to get shipments out and capitalize on this pause, and the decline in May orders due to the trade war with the U.S.What To Know
The exports growth was boosted by shipments to non-U.S. markets. Both exports to and imports from the U.S. dropped, by 16.1 percent and 15.5 percent respectively. However, this was less severe than the 34.5 percent and 18.1 percent drops recorded in May.
China’s trading relationship with the U.S. somewhat stabilized in June, after negotiators secured a tariff truce in early May. The agreement, struck after U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with their counterparts in Geneva, saw both countries bring down the significant duties placed on each other’s imports, and established a framework for future negotiations.
