China's imports unexpectedly decreased by 2.3% in June from the previous year, while exports rose by 8.6%, resulting in a record monthly trade surplus of over $99 billion according to customs data released on July 12, 2024.
The decline in imports was driven by a decrease in China's imports of rare earths, meat, cosmetics products and machine tools. However, imports of iron ore and oil grew during the first half of the year. Exports of cars rose by 18% in volume last month from the same period last year.
China's trade with its major trading partners such as the Association of Southeast Asian Nations, European Union and US saw mixed results in the first six months of 2024. While China's trade with ASEAN surged by 7.1%, EU's trade with China fell, both in terms of imports and exports.
China's factories have been racing to catch up with global demand after a stringent Covid-19 lockdown in Shanghai had crippled output throughout much of central China. Millions of people in China are looking for ways to save money due to falling apartment prices, which represent 60 to 80 percent of household savings, an unusually large proportion by international standards.
The record trade surplus has raised concerns among foreign governments about the impact on their economies and industries. Officials in the US, European Union, Brazil and India have been imposing tariffs or increasing existing ones on Chinese goods to protect their domestic industries.
China's exports of furniture, home appliances, ships and cars grew in the first half of 2024. However, exports of rare earths fell in terms of value but rose in volume. China's imports and exports with Brazil grew rapidly during the same period.
The National Bureau of Statistics is scheduled to release second-quarter Gross Domestic Product figures and economic indicators for June on Monday.
