China's exports beat expectations in June, while imports rebound for the first time this year

CNBC

2 days ago

China's exports beat expectations in June as businesses continued to rush out shipments to capitalize on a temporary tariff reprieve ahead of an August deadline.
Exports jumped 5.8% in June in U.S. dollar terms from a year earlier, customs data showed Monday, exceeding Reuters' poll estimates of a 5% jump.
Imports rose 1.1% from a year earlier. While missing economists' expectations of a 1.3% rise, that marked the first time that imports have grown this year, reversing the trend of declining imports this year amid sluggish domestic demand.
U.S. President Donald Trump's tariff policies have prompted Chinese exporters to accelerate efforts to diversify into alternative markets. In April and May, China's exports appeared resilient, jumping 8.1% and 4.8% year on year, respectively, as surging shipments to Southeast Asian and European Union countries offset the declines in U.S.-bound goods.
Trump's 145% prohibitive tariffs on Chinese goods briefly took effect in April, with Beijing retaliating with triple-digit duties and other punitive measures, such as export control on critical minerals.
The tentative trade truce struck by both sides in Switzerland on May 12 — that led them to drop a majority of tariffs for 90 days — had nearly derailed, as the U.S. accused China of slow-walking on its pledge to ease restrictions on rare-earth exports while Beijing lashed out on fresh tech export curbs and student visa revocation by Washington.
Ties between the world's two biggest economies have been on the mend following two days of meeting in London last month, where both sides arrived at a framework to implement the consensus. Beijing agreed to resume shipments of rare earths while Washington offered to ease some export restrictions on ethane, chip-design software and jet engine components.
Both sides are working toward an Aug. 12 deadline to reach a durable deal.
Wang Lingjun, deputy chief of Chinese customs authority, said in a press conference Monday that the Geneva agreement and the London framework were "hard-won" and both sides were accelerating to implement the agreed terms.
U.S. Secretary of State Marco Rubio said last week that he had "constructive and pragmatic" talks with Chinese Foreign Minister Wang Yi, and the odds of Trump meeting Chinese President Xi Jinping were high.
Wang also emphasized that both countries should hold up the consensus reached by their leaders with concrete policies and actions.
China is set to release its second-quarter gross domestic product growth on Tuesday, with economists polled by Reuters pegging growth at 5.1%, slower than the 5.4% expansion in the first quarter.